Tuesday July 21, 2020 – President Uhuru Kenyatta’s Government borrowed a lot of money in April and May ostensibly to fight the coronavirus.
According to data released by the Central Bank of Kenya, between April and May, Kenya borrowed Sh 213 billion from the International Monetary Fund and World Bank to fight COVID 19.
In mid-May, the country received Sh106 billion from the World Bank, a week after the IMF disbursed a Sh79 billion facility to help Kenya fight the effects of Covid-19.
World Bank Country Director for Kenya, Felipe Jaramillo, told a virtual press conference that the Sh 100 billion loan comprised of a Sh 75 billion credit from the International Development Association (IDA) and a further Sh 25 billion loan from the International Bank for Reconstruction and Development (IBRD).
The National Treasury has been floating at least Sh60 billion worth of bonds every month since January, either for budgetary support or infrastructure.
Kenya’s growing debt appetite has raised concerns among international institutions including IMF and World Bank, with most of the critics worried about the country’s ability to repay.
The Kenyan DAILY POST