NAIROBI, Kenya Feb 29 – Details have emerged on how President William Ruto’s government contracted 11 new loans worth Sh223.54 billion in the last five months to revive key parastatals and projects within the country.
A report tabled before the National Assembly by Deputy Majority Whip Naomi Waqo shows that the government contracted the loans from September 1, 2023, to January 31, 2024.
The report from the Treasury showed that they borrowed Sh5,834,204,000 (USD 40,000) on October 23, 2023, for the Development of Urban Roads in Five Counties in the North Eastern Province.
“The project shall create new job opportunities because of new transportation possibilities, improved market access and the possibility of labour migration. The Project shall also enhance economic development and boost investment, as a result of the reductions in travel time and costs,” reads the report.
The government also contracted a Sh28,581,450,870 (EUR 182,100,000) loan to improve the financial viability of KPLC and increase access to electricity.
The loan, which was signed on December 15, 2023, with the International Development Association (IDA), will largely enable Kenya’s Green and Resilient Expansion of Energy Program.
Taxpayers are expected to repay the loan from October 2028 through to April 2053.
President Ruto’s administration also signed a loan valued at Sh14,298,573,170 (EUR 91,100,000) with the IDA.
The loan will go towards the National Youth Opportunities Towards Advancement Project, with the country expected to pay the loan in Euros starting from October 15, 2029, through to April 2035.
Under the same project, another loan of Sh14,298,573,170 (EUR 91,100,000) was also contracted with IDA.
“Its purpose is to increase employment, earnings, and promote savings for Targeted Youth, at the national scale,” the report read.
The documents show on December 21, 2023, the Kenyan Government signed another loan with IDA amounting to Sh4,366,839,851 (SDR 22,600,000).
The purpose of the loan, the report says, is to increase access to irrigation water for project beneficiaries and enhance the institutional framework and strengthen capacity for water security and climate resilience in certain areas of the territory of the recipient.
Kenyans are expected to begin the repayment period in April 2029 through to October 2053.
The loans were contracted by the Kenya Kwanza government, with ten of the loans being from multilateral lenders and one from a commercial lender.
The treasury document also shows a loan amounting to Sh36,994,222,790 (EUR 235,700,000) that was contracted between IDA and the government of Kenya on December 19, 2023.
According to the report, the monies will be used for the second Program for Strengthening Governance for Enabling Service Delivery and Public Investment in Kenya.
Citizens will start repaying the loan from March 2029 to September 2053.
“The purpose for the loan is to enhance revenue mobilization and deepen accountability and transparency of public finance management at the national government level,” adds the report.
President Ruto’s administration also signed a Syndicated Term Loan Facility valued at Sh30,629,571,000 (USD 210,000,000) from the Eastern and Southern African Trade and Development Bank.
The loan amount will be used for refinancing or repurchasing Eurobonds issued by the Kenyan government and payment of any fees, costs, and expenses in connection with the finance documents.
The government also signed a Sh17,076,671,360 (EUR 108,800,000) loan from IDA to aid the Health Emergency Preparedness, response, and resilience program.
“The purpose for the loan is to strengthen health system resilience and multisectoral preparedness and response to Health Emergencies in Kenya,” read the report.
Additionally, a loan for the Second Kenya Urban Support Program was signed on December 21, 2023, between the International Development Association (IDA) and the Kenyan Government.
The loan was valued at Sh21,440,012,020 (EUR 136,600,000) with the repayment set to start in 2029 through to April 2035.
The documents showed the loan will be utilized to strengthen the capacities of urban institutions to improve the delivery and resilience of urban infrastructure and enhance the private sector engagement in urban planning.