According to a new report, the Kenya Kwamza government contracted 11 new loans worth Kes 223.54 billion in the last five months to revive key parastatal s and projects within the country.
Tabled before the National Assembly by Deputy Majority Whip Naomi Waqo, the report shows that the government contracted the loans from September 1, 2023, to January 31, 2024.
The report from the Treasury showed that they borrowed Kes 5,834,204,000 on October 23, 2023, for the Development of Urban Roads in Five Counties in the North Eastern Province.
“The project shall create new job opportunities because of new transportation possibilities, improved market access and the possibility of labour migration. The Project shall also enhance economic development and boost investment, as a result of the reductions in travel time and costs,” reads the report.
The government also contracted a Kes 28,581,450,870 loan to improve the financial viability of KPLC and increase access to electricity.
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The loan, signed on December 15, 2023, with the International Development Association (IDA), will largely enable Kenya’s Green and Resilient Expansion of Energy Program.
Taxpayers are expected to repay the loan from October 2028 to April 2053.
The government also signed a loan valued at Kes 14,298,573,170 with the IDA.
The loan will go towards the National Youth Opportunities Towards Advancement Project, with the country expected to pay the loan in Euros from October 15, 2029, through to April 2035.
Under the same project, another loan of Kes 14,298,573,170 was also contracted with IDA.
“Its purpose is to increase employment, earnings, and promote savings for Targeted Youth, at the national scale,” the report shows.
Moreover, the Kenyan government signed another loan with IDA amounting to Kes 4,366,839,851 on December 21, 2023, to increase project beneficiaries' access to irrigation water.
And enhance the institutional framework and strengthen capacity for water security and climate resilience in certain areas of the recipient's territory.
In addition, the treasury document shows a loan amounting to Kes 36,994,222,790 that was contracted between IDA and the government of Kenya on December 19, 2023.
According to the report, the monies will be used for the second program, Strengthening Governance for Enabling Service Delivery and Public Investment in Kenya
President Ruto’s administration also signed a Syndicated Term Loan Facility valued at Kes 30,629,571,000 from the Eastern and Southern African Trade and Development Bank.
The loan amount will be used for refinancing or repurchasing Eurobonds issued by the Kenyan government and payment of any fees, costs, and expenses in connection with the finance documents.
Furthermore, the government also signed a Kes 17,076,671,360 loan from IDA to aid the Health Emergency Preparedness, response, and Resilience Program.
Additionally, a loan for the Second Kenya Urban Support Program was signed on December 21, 2023, between the International Development Association (IDA) and the Kenyan Government valued at Kes 21,440,012,020 with the repayment set to start in 2029 through to April 2035.
