KSh 5 Trillion Debt To Ruin Ruto’s Legacy
KSh 5 Trillion Debt To Ruin Ruto’s Legacy
KSh 5 Trillion Debt To Ruin Ruto’s Legacy
The weight of foreign debt accrued by succeeding governments is posing a threat to Kenya’s economy and tarnishing President William Ruto’s economic program. According to a report issued by the Office of the Controller of Budget (CoB), Ruto plans to utilize Ksh521 billion in his first term of office to pay off debts from outside sources.
In the event that President Ruto is re-elected, he will additionally have to pay Ksh4 trillion in interest on concessional and syndicated loans in addition to other external debts. A Ksh1 trillion domestic debt is also due to mature during this time.
The Kenya Kwanza administration has decided to finance its external debt by spending Ksh316 billion in 2024. This sum will mostly be used to pay down the 2014-acquired Eurobond that matures in June 2024. If the Shilling keeps losing value, the sum will undoubtedly increase.
With just Ksh11 billion in external debt maturing in 2025, Ruto’s administration will experience a brief reprieve. Kenya will pay off Ksh55 billion in external debt in 2026 and Ksh512 billion in debt in 2027.Kenya will repay the majority of its foreign debt between 2027 and 2032, with the majority of the money earned going toward the Ksh4.7 trillion in debt that will mature during that time. The government is already having difficulty meeting its loan repayment obligations to other countries.
According to CoB, Ksh1.75 trillion was allotted for paying down the national debt in the fiscal year 2023–2024.According to a CoB report on Kenya’s debt repayment status for FY 2023–2024, “Allocation towards external debt amounts to Ksh748 billion, comprising Ksh540 billion for redemption and Ksh207 billion for interest payments, while domestic debt amounts to Ksh1 trillion, comprising Ksh374 billion for redemption and Ksh628 billion for interest payments.”
