- Ruto said by December Kenya will settle Sh45bn Eurobond debt that Kenya has been having.
Image: Ezekiel Aminga
I can confirm that we shall pay the debt that has become a source of concern, President William Ruto has said.
Speaking when he addressed Kenyans, Ruto said by December, Kenya will settle the first Sh45bn Eurobond instalment debt.
Kenya has a debt of 2b US dollars that is due next year.
"I can confirm with confidence that we shall and will pay the debt that has become a source of concern to citizens, partners and Markets," he said.
"We have worked hard, at home and further abroad, to mobilise a broad coalition of bilateral development partners, multilateral development banks and other agencies which have rallied to pull our country back from the brink of debt distress and set us firmly on the path towards sustainable economic growth."
Ruto said Kenya's intentions have enabled Kenya to normalise relationships with IMF World Bank and various partners.
"To a certain extent they are now working with us to achieve our bottom up model approach," he said.
Ruto said Kenya's public borrowing had long crowded out the productive sector from the financial markets, raising the cost of credit and slowing down trade and commerce, especially the micro, small and medium-sized enterprises, including Mama Mboga.
"Consequently, many entrepreneurs were referred for blacklisting by the credit reference bureau, CRB, where 7 million borrowers were listed," he said.
Ruto said the Covid 19 pandemic coupled with global supply chain disruptions and geopolitical conflicts significantly raised inflation and interest rates adversely affecting our economy.
Kenya has been drawing the $2.3 billion facility approved by the IMF board in 2021 as part of the Extended Credit Facility to support its budget.
In July, the Washington-based institution approved the disbursement of Sh58.8 billion ($415.4 million) to Kenya in the fifth review of the multi-year programme, which runs until April 2025.
The disbursement put the multilateral lender’s cumulative funding to the country under the programme at Sh288.6 billion ($2.04 billion) since its approval.
It also approved the disbursement of Sh78 billion ($551.4 million) under the resilience and sustainability facility (RSF), which is expected to support the country’s efforts in combating the effects of climate change.