Eurobond Payment Threatening to Taint Ruto’s 2024
Eurobond Payment Threatening to Taint Ruto’s 2024
Eurobond Payment Threatening to Taint Ruto’s 2024
During his State House, Nakuru, New Year’s address, President William Ruto admitted that 2023 had been an especially hard year for Kenyans. The President gave his constituents assurances on Sunday that the challenging phase was behind them and that they could look forward to 2024 with hope.
Despite the President’s reassurance to the nation, the cloud of a Ksh300 billion Eurobond repayment in June 2024 threatened to make 2024 yet another difficult year for Kenyans in terms of economic growth and cost of living. In 2023 alone, Kenya borrowed in the external market over Ksh300 billion (USD 2 billion) and collected over Ksh1 trillion in taxes.
A hefty portion of the proceeds—roughly Ksh11 trillion—went toward paying off a debilitating debt, with less going toward the development goal. Ruto said that his government has implemented sufficient safeguards to prevent Kenya from going into recession as a result of debt repayment.
We overcame the menace of starvation and economic stagnation in 2023. Regarding foreign debts, Kenya is now secure,” he declared. The President has pledged that Kenya will uphold its international duties, but the Eurobond repayment will have an impact on the home front.
Pay delays for civil officials are anticipated, and county executives should prepare for potential delays in the distribution of devolved money. In an appearance before the National Assembly Finance Committee on December 6, Treasury Cabinet Secretary Njuguna Ndung’u acknowledged that the government was experiencing an economic crisis.
He clarified that the Treasury was having trouble making salary payments, and that things will get worse when the Eurobond matures in June 2024. On December 27, digital strategist Dennis Itumbi disclosed that President William Ruto was considering the repayment of debt and economic stability as major priorities for 2024.
He clarified that in order to prevent the issue from plunging the country into financial ruin, Ruto was hosting many sessions in the State House. He disclosed, “The conversation and debate about the various options available and the choices made in the of the nation continue to pay off.”
David Ndii, the head of the President’s Council of Economic Advisors, is in charge of the group that provides advice to the president. Should the team be able to successfully lead Kenya through the June 2024 deadline, the President will have more time to carry out the majority of his development initiatives. It is anticipated that the nation will only have to pay less than Ksh15 billion in debt service by 2025.
