Ruto’s Eurobond Warning: Brace for Tough Times Over Ksh 500B Payment
Kenyans have been warned by President William Ruto of challenging economic times in the midst of his administration’s efforts to service the country’s pending debt, which includes the Eurobond.
Ruto affirmed in a Thursday parliamentary address that the nation will repay the initial installment of the Ksh500 billion Eurobond loan in December.
Since assuming office in September 2022, the government has established the foundation for servicing its loans, including engaging with numerous development partners and financial institutions, he acknowledged.
“Next month in December we will be able to settle the first USD 300 million or Ksh500 billion installment of the USD 2 billion Eurobond debt that falls due next year. I can now confirm with confidence that we will and shall pay the debt that has become a source of much concern to citizens, markets, and our partners,” he stated.
“The new direction may not be easy but it is ethical, responsible, prudent, and most importantly necessary. We have had to make hard decisions and make painful choices because we owe the people of Kenya to do the right things and to confront facts as they are.”
Ruto clarified that the repayment of the loans was imperative, but cautioned that the decision would negatively affect the high cost of living in Kenya.
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He maintained that Kenya was obligated to repay the debts, arguing that doing so was the most responsible course of action.
Kenya, according to Ruto, would be in dire financial straits if the required measures were not implemented.
Nevertheless, he insisted that the nation was unable to reinstate the subsidies that had been in place to protect Kenyans during the severe economic downturn.
In contrast, he suggested that he had prioritized agricultural sector support as a means to mitigate the exorbitant expenses associated with food commodities.
For example, he referenced the decrease in maize flour prices as an example of his government’s implementation of a fertilizer subsidy program, which is anticipated to increase agricultural output.
“As a country, we were living large and living beyond our means. The time has come therefore to retire the false comforts and illusionary benefits of wasteful consumption by which we dug ourselves deeper into the hole of avoidable debt.” the Head of State affirmed.
Ruto’s Eurobond Warning: Brace for Tough Times Over Ksh 500B Payment
