In a hurry? Here’s a quick summary…
- David Ndii, Chairperson of the Presidential Council of Economic Advisors, addressed controversy surrounding President William Ruto’s alleged Ksh631 billion loans, providing a breakdown of government spending from investors and the World Bank.
- Ndii clarified that a significant portion of the funds, including Ksh230 billion from the Eurobond, were allocated to repurchase existing debts and settle obligations, amidst concerns over the government’s borrowing practices and deviation from campaign promises.
On Tuesday, April 2, David Ndii, Chairperson of the Presidential Council of Economic Advisors, entered the fray regarding the alleged Ksh631 billion loans attributed to President William Ruto.
Addressing concerns raised on social media, Ndii utilized his X account to provide a detailed breakdown of how the government allocated the funds obtained from investors and the World Bank during the past three months.
Prompted by the public outcry over claims of the government securing Ksh631 billion in loans within the specified timeframe, Ndii sought to shed light on the matter.
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Notably, the government’s acquisition of Ksh233 billion through the Eurobond and an additional Ksh240 billion through Infrastructure Bonds came under scrutiny, sparking debate among Kenyans on social media platforms regarding the government’s reliance on debt to meet budgetary needs, a perceived shift from its initial campaign promises.
Moreover, apprehension surfaced concerning the government’s decision to borrow Ksh158 billion from the World Bank, with disbursement scheduled by April 30. Ndii clarified that of the Ksh230 billion obtained from the new Eurobond issuance, a significant portion went towards repurchasing a portion of the Ksh310 billion Eurobond set to mature in June.
Subsequently, February saw the government securing Ksh230 billion, primarily earmarked for repaying the 2014 loan, with a remaining Ksh80 billion awaiting settlement.
Furthermore, a substantial sum of Ksh65 billion was allocated to settle a segment of the loan associated with the Standard Gauge Railway (SGR) project, while an equivalent amount awaits repayment by July this year.
Ndii contended that the residual funds were utilized to retire the Ksh70 billion infrastructure bond intended for national infrastructure projects.
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In a related development, a report presented to the National Assembly on February 27 revealed that President Ruto’s administration procured loans totaling Ksh223 billion from external sources over a span of five months, from September 2023 to January 2024.
These loans were intended to facilitate various projects aimed at bolstering employment, enhancing water supply, and upgrading urban infrastructure, with repayment structured over several installments, culminating in 2053.