Ahmednasir Abdullahi Slams Ruto's Govt over KSh 240b Eurobond Loan: "Where're We Taking Poor Kenya?"

 

Outspoken lawyer Ahmednasir Abdullahi has criticised the latest loan taken by President William Ruto's administration. Ahmednasir Abdullahi said he will consider migrating to Mandera. In a statement on Tuesday, February 13, Ahmednasir questioned the rationale behind the $1.5 billion (KSh 241 billion) Eurobond loan. Why Ahmednasir is against Eurobond loan According to the outspoken lawyer, former president Uhuru Kenyatta's administration secured a similar loan facility, but Kenyans have little to show for it after 10 years.  Ahmednasir argued that the latest loan by the Kenya Kwanza administration means Kenyans will be forced to repay more than $4 billion (KSh 600 billion) in the next ten years. He pointed out that the country will spend 85% of its taxes on repayment of the loan, which will hurt the country's development. "H.E. UHURU's initially borrowed $ 2 billion EURO BOND about 10 years ago. No one knows what or how it was used for. At best, it was used for recurrent expenditure. At worst, the usual thievery of the native. For the time being, let us ignore the allegations that $ 1 billion was deposited in foreign bank accounts and never reached the city in the sun. Now, H.E. Ruto borrows another $ 2 billion to be repaid with higher interest 10 years down the road (kicking the can down the road). So, 10 years later, we will be out of pocket $4 billion and interest...surely where are we taking poor Kenya and her zombie natives? From this years, Kenya will spend 85% of its taxes on loan repayment...right time should I go back to Mandera?" Ahmednasir posed. As reported earlier, Kenya successfully issued a $1.5 billion bond (about KSh 240 billion) at a new interest rate of 9.75% due in 2031. The Eurobond loan will be repaid (amortised) in three equal instalments in 2029, 2030 and 2031, resulting in a weighted average life of 6 years. "Kenya received strong demand, with a high-quality order book exceeding $6 billion (KSh 957 billion), allowing for tighter pricing and an increased issuance compared to initial guidance," said the National Treasury in a press release. The loan is expected to finance the ongoing exercise to buy back the 2014 $2 billion (KSh 321 billion) Eurobonds due in June this year. 

by  Amos Khaemba