Thursday, April 8, 2021 – President Uhuru Kenyatta is set to plunge Kenya further into debts after it emerged that he is set to borrow another KSh780 billion in Eurobonds despite its rising public debt and mounting pressure to slow down on borrowing.
The details emerged through the International Monetary Fund (IMF), which revealed Uhuru is back in the international market seeking additional funds for the next one and half years.
This is despite the Sh255 billion loan from the IMF that has caused a lot of heat.
According to a borrowing plan submitted to IMF by the National Treasury, Kenya plans to borrow KSh528 billion in concessional loans, which have long grace periods.
Another KSh253 billion, on the other hand, would be commercial loans that come with high-interest rates and a short-term repayment period.
The IMF noted the loan programme allows the country to borrow more funds for debt repayment.
The debt ceiling to be raised by the Treasury in January indicated it planned to push parliament to raise the country’s debt ceiling from the current KSh9 trillion to a new limit of KSh12 trillion.
The move, the exchequer stated, aims to enable the government to borrow more to finance the 2021/2022 budget, which, from the projections and all indications, is likely to suffer a serious financial shortfall running into billions of shillings due to revenue constraints.
The Kenyan DAILY POST