MERU, Kenya Jan 25 – President William Ruto has reiterated his government commitments of settling the nation’s debt which stands at Sh10.2 trillion according to the latest data from the Central Bank of Kenya (CBK).
President Ruto who started his 3 days tour in Meru County on Thursday stated the country was on a path to get auctioned for failing to clear its national debt from international lenders including the International Monetary Fund (IMF).
The head of state said for the government to propel its development projects the high debt burden must first be resolved.
“When I assumed office Kenya debt had traveled all the way to New York but my government is committed to clearing all the debt,” he said.
President Ruto blamed the previous regime’s close engagements with the opposition stating the opposition made the government forget about its top Agendas for Kenyans.
“The reggae brothers played reggae and forgot to pay the nation’s debt,” said Ruto adding that the country’s economy has been struggling as a result of the huge debt.
The government however found relief as the International Monetary Fund (IMF) on Wednesday last week approved sh.150 billion loan boosts to Kenya which has been experiencing financial pressures since COVID 19 pandemic.
“I have talked with the IMF, the World Bank and other development partners on how we will settle our country’s debt,” added ruto.
This endorsement follows the conclusion of a consultation meeting held by the IMF Executive Board with Kenya, during which they scrutinized the agreement.
The Board’s decision now enables the immediate disbursement of approximately US$624.5 million (Sh 99.6 billion) under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) arrangements.
The IMF also specified that the decision includes an immediate disbursement of about US$60.2 million under the Resilience and Sustainability Facility (RSF) arrangement.
Initially approved in April 2021, the EFF/ECF arrangement was extended by 10 months in July 2023, stretching its validity until April 2025.
The head of state also assured that all uncompleted roads including within Meru County will be completed in time in order to benefit locals.
