Insider Insight: Ndii Deciphers Ruto’s Ksh631 Billion Splurge in 3 Months
On Tuesday, April 2, David Ndii, the Chairperson of the Presidential Council of Economic Advisors, spoke about the contentious issue regarding the purported Ksh631 billion loans linked to President William Ruto.
Using his X account to reply to a social media post, Ndii provided a detailed analysis of the government’s expenditure of funds acquired from investors and the World Bank during the preceding three months.
Ndii felt obligated to provide clarification after accusations surfaced that the government had obtained loans totaling Ksh631 billion in the past three months.
The leader faced scrutiny for obtaining Ksh233 billion via the Eurobond and acquiring an additional Ksh240 billion through the issuance of Infrastructure Bonds.
Kenyans expressed worry on social media about the government’s shift towards using debt to fund budgetary needs, which diverges from the promises made during the election campaign.
Questions were also brought up after the government decided to secure Ksh158 billion from the World Bank, which is scheduled to be disbursed by April 30th.
Ndii stated that the Ksh230 billion obtained from the recent Eurobond issuance was used to repurchase a portion of the Ksh310 billion Eurobond set to mature in June.
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In February of this year, the government obtained Ksh230 billion in funds specifically allocated to repay the 2014 loan. As a result, Kenya now has the responsibility of repaying the remaining Ksh80 billion to fulfill the repayment obligation.
A sum of Ksh65 billion was allocated towards settling a portion of the loan acquired for the development of the Standard Gauge Railway (SGR), with an additional Ksh65 billion yet to be repaid by July of this year.
Ruto’s economic advisor additionally stated that the rest of the funds were utilized to repay the Ksh70 billion infrastructure bond issued by the government, which was allocated for funding various infrastructure initiatives across the nation.
A document presented to the National Assembly on February 27th of this year disclosed that the administration led by President William Ruto borrowed a staggering sum of Ksh223 billion from foreign creditors in five months.
The report states that eleven loans were acquired spanning from September 2023 to January 2024. These loans will be reimbursed through multiple payments, with the final installment due by 2053.
The loans were additionally acquired to facilitate government initiatives aimed at boosting employment, upgrading water supply, and advancing urban infrastructure development.
Insider Insight: Ndii Deciphers Ruto’s Ksh631 Billion Splurge in 3 Months