RUTO to sink Kenya deeper into debts as he seeks a whopping Ksh92 billion World Bank loan to help his government to function

 

Wednesday, December 7, 2022 – Kenya is seeking a Ksh92 billion ($750 million) budget support loan from the World Bank. 

This is even as President William Ruto had vowed never to borrow again due to the debt burden the country is facing.

According to National Treasury Cabinet Secretary Njuguna Ndung’u, the loan facility will help cover the government’s funding needs for the financial year to the end of June 2023. 

Speaking at the launch of the World Bank’s Country Partnership Framework for 2023-28 in Nairobi yesterday, Prof Ndung’u indicated that the government was seeking more cash from the World Bank. 

“We have been trying to negotiate this to Ksh122.75 billion ($1 billion) but the World Bank has been adamant,” Ndung’u revealed.

Ndung’u had in November indicated that Kenya was in talks with the World Bank for new financing, without disclosing the amount involved.

“The proposed package under discussion with the World Bank aims at promoting sustainable, resilient, and inclusive growth,” Ndung’u reiterated in a speech at the World Bank event.

Kenya’s appeal for the new facility is coming nine months after the lender extended a similar amount to help accelerate ongoing inclusive and resilient recovery from the economic crisis occasioned by the pandemic.

The Ksh92 billion approved by the World Bank in March 2022 was part of the Development Policy Operation that intended to help contribute to greater transparency and the fight against corruption.

Ruto is on record for looking for alternative and less costly loans after his predecessor Uhuru Kenyatta left the country with high-interest commercial debt.