It has been revealed that Kenya’s Kwanzaa administration received 11 loans worth Sh258.4 billion between May and August 2024 to fund various projects.
A report submitted to Parliament by the Ministry of Finance indicates that the loans were obtained from both multilateral and bilateral financial institutions.
“The total value of the 11 new loans signed is Sh258,408,080,602, of which two have been disbursed up to the time of writing this report,” the document states.
The report, filed on October 1 under the Public Finance Management Act (PFM), shows that the loan will finance projects in the health, energy and micro, small and medium enterprises (MSME) sectors.
It revealed that the government secured a Sh20.6 billion loan from the International Development Association (IDA) on May 3 to improve primary health services and strengthen institutional capacity for service delivery. There is.
On June 4, the government signed a Sh39.7 billion loan with IDA aimed at promoting fiscal efficiency, transparency and equity, and fostering more competitive product and labor markets. .
To support the second phase of the country’s Green and Resilient Energy Expansion Program, the government also signed a Sh5.8 billion loan from IDA to increase Kenya Power’s energy trade and renewable energy integration capacity.
The loan will be repaid semi-annually starting in 2029 and will continue to be repaid until 2058.
Additionally, the government has signed a Sh109.8 billion loan with the International Bank for Reconstruction and Development (IBRD) for fiscal sustainability and resilient growth, and a Sh148 billion loan from the African Development Bank to enhance high-voltage green power supply. A loan of Shrikkent 100 million was signed. Network improvements.
The revelation came after the rejection of the Finance Bill 2024, which proposed tax measures to raise Sh350 billion. Following the protests, President Ruto warned that he would need to borrow money to finance the project.
