Kenya Loans: The government of President Uhuru Kenyatta is back to its borrowing ways. A shocking report that appeared in the Business Daily on Wednesday says that the government will borrow an average of Sh. 2.5 billion daily before the end of President Uhuru Kenyatta’s final term in August 2022.
“Treasury chiefs project in a draft Budget Review and Outlook Paper new loans of Sh. 1.87 trillion in the two years to June 2020 or Sh. 2.5 billion daily, pushing Kenya’s debt to Sh. 8.06 trillion,” the report says.
This means that President Uhuru will leave Kenya in one of the deepest debt holes. It will also mean, says the report in the paper, that Uhuru will have borrowed at least Sh. 6.1 trillion to implement his manifesto in 10 years in power having inherited slightly more than Sh. 1.89 trillion in June 2013.
This report comes barely a week after another related report showed that in the three months from March to June this year, Uhuru’s administration borrowed a whooping Sh. 410 billion. This averaged at Sh. 4.5 billion every 24 hours for the three months.
By the first week of September, Kenya’s public debt was fast approaching the Sh. 7 trillion mark. It stood at Sh. 6.963 trillion with a Sh. 50 billion bond already in the market. By June this year, Kenya’s public debt was at a record Sh. 6.68 trillion mark. This meant that the Jubilee government had borrowed close to Sh. 5 trillion since taking over from the Kibaki administration in 2013.
By the time the coronavirus was confirmed in Kenya, public debt stood at Sh. 6.2 trillion. By June this year, this debt had shot up to Sh. 6.6 trillion.
The latest revelations are bound to instigate criticism over Uhuru’s huge borrowing appetite. Since 2013, the president has been criticized for overseeing what has been termed as plunder of borrowed resources. The impact of the close to Sh. 6 trillion borrowed funds has largely not been felt in the economy. Kenya Loans.