Yatani dismisses report on Kenya being 'broke'

In Summary

•The Daily Nation had reported that the government is broke, and in need of a Sh75.5 billion debt relief.

•In its report, it said the government was now ready to take up an offer to defer repayment of a portion of its debts, despite putting the country’s credit rating at risk of a downgrade.

Treasury CS Ukur Yatani.
Treasury CS Ukur Yatani.
Image: FILE

Treasury CS Ukur Yatani has dismissed claims that Kenya is broke and in need of debt suspension.

The Daily Nation had reported that the government is broke, and in need of a Sh75.5 billion debt relief.

The article said the government was now ready to take up an offer to defer repayment of a portion of its debts, despite putting the country’s credit rating at risk of a downgrade.

 

But in a statement on Friday, Yatani said the allegations were malicious and unfortunate.

"There has not been any decision whether Kenya is going to apply for the G20 debt service suspension initiative, " he said.

Yatani said G20 had offered to suspend the debt but they are encouraged that the economy has begun picking up despite the pandemic.

"Kenya has not applied for the G20 debt service suspension service," he said.

"Whereas challenges are there,  we are confident that the economy will respond to policy and structural reforms measures supported by our development partners."

The Nation further reported that acceptance of the repayment relief plan could be interpreted as a technical sovereign debt default by holders of Kenya’s Eurobonds, which Yatani had in May this year cited as the reason for snubbing the G20 offer.