Ruto pledges to stop borrowing amidst rising debt

 

Kenya Kwanza presidential candidate William Ruto has pledged to reduce borrowing money to boost the economy if he gets to power after the August polls.

Speaking during an interview with the BBC on Monday the DP said that he has a strategy and a plan on how to go about the debt situation.

"They say when you find yourself in a hole stop digging, we will put the brakes on more borrowing. It may not come to zero but we will begin the journey to slow down on more borrowing," he said.

The Deputy President said that he is aware of the debt situation in the country and the Kenya has the capacity to manage it.

This comes two days after Kenya received a $235.6 million (Sh27.8 billion) loan as part of  International Monetary Fund's (IMF) cushion fund approved in April last year.

This follows the completion of the third review over the 38-month agreement under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements by the IMF's board late on Monday.

The amount will be used for budget support, bringing Kenya’s total disbursements for budget support so far to about $1.208 billion.

This is part of the $2.34 billion loan facility approved by the international lender for Kenya on April 2, 2021.

According to the National Treasury, Kenya’s debt is on course to hit the current KSh9 trillion later this year as the country’s reliance on domestic and external financing to fund spending continues.

It also estimates the debt stock will hit Ksh8.6 trillion at the close of June 2022 before rising further to KSh9.5 trillion next June.

By June 2026, the public debt stock is expected to hit an alarming Sh11.6 trillion.    BY THE STAR