Ruto borrowed Sh258.4 billion in three months

The Kenya Kwanza administration took 11 loans worth Sh258.4 billion between May and August 2024 to finance various projects, it has emerged.

A report tabled by the Treasury before the National Assembly shows the loans were obtained from both multilateral and bilateral lenders.

“The total value of the 11 new loans signed is Sh258,408,080,602. Two of these had been disbursed by the time of this report,” the document states.

The report, tabled on October 1, in line with the Public Finance Management (PFM) Act, shows that the loans will finance projects in the health, energy, and Micro, Small and Medium Enterprises (MSME) sectors.

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It reveals that on May 3, the government secured a Sh20.6 billion loan from the International Development Association (IDA) to improve primary healthcare services and strengthen institutional capacity for service delivery.

On June 4, the government signed a Sh39.7 billion loan with IDA to promote efficiency, transparency, and equity in public finance, as well as fostering more competitive product and labour markets.

To support the country’s Green and Resilient Expansion of Energy Programme Phase 2, the government also signed a Sh5.8 billion loan from IDA to increase Kenya Power’s capacity for energy trade and renewable energy integration.

This loan will be repaid in semi-annual instalments starting in 2029, with further repayments continuing  through to 2058.

Additionally, the government signed a Sh109.8 billion loan with the International Bank for Reconstruction and Development (IBRD) for fiscal sustainability and resilient growth, and a Sh14.8 billion loan from the African Development Bank to enhance green electricity supply through high-voltage network improvements.

The revelations come after the rejection of the 2024 Finance Bill, which  proposed tax measures to raise Sh350 billion. Following the protests, President Ruto warned borrowing would be necessary to finance operations.