Ruto Dismisses Foreign Investor Warning
Conversations held in April and May fell apart as both parties exchanged accusations of deliberate interference.
The credit rating agency had issued a warning that Kenya might face a potential default signal if it pays back its Ksh282 billion Eurobond before its maturity date.
In June, Ruto had declared the nation’s plan to repurchase fifty percent of the bonds, as a step towards addressing the growing burden of public debt.
Despite Moody’s warning, the President affirmed his determination to repurchase the bonds before their maturity in June 2024.
At a religious gathering conducted at Sagana State Lodge, President Ruto restated his unwavering commitment to move forward with the proposal.
“We have a Ksh282 billion loan that is maturing next year but we have said we cannot wait until then. In our budget, we have planned on reducing our debt,” the President stated.
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The President made a strong declaration where he strongly criticized Moody’s. He accused the credit rating agency of being against the government’s plan to repurchase the Eurobond. He implied that the agency had hidden reasons and wanted Kenya to fail in paying its debts so that investors could take advantage of higher interest rates.
Ruto conveyed a resolute position, stating that his leadership had effectively forged partnerships with sympathetic allies who would aid in repaying the loan earlier than planned.
He stated that in the future, foreign investors won’t be able to discover ways to take advantage of Kenya illegitimately. Moody’s had cautioned that Kenya was attempting to outsmart the system by purchasing bonds ahead of time at below-average prices.
The global company cautioned Ruto that his actions could result in a financial disadvantage for overseas investors who purchased the bonds issued during the tenure of former President Uhuru Kenyatta’s administration.
Ruto praised Njuguna Ndung’u, the Treasury Cabinet Secretary, for devising a remarkable strategy to rescue the nation from repaying millions in debt.
The leader of the nation additionally criticized his forerunner, Uhuru Kenyatta, for excessive borrowing that nearly pushed the country into a dire economic situation.
“Our first job was to stabilize the economy of our country. We had a crippling debt without a proper plan on how to service it,” the President noted.
Ruto Dismisses Foreign Investor Warning
