The government has reportedly lined up to secure Sh780 billion Eurobonds loan from the international market despite online campaign against public borrowing.
According to the International Monetary Fund (IMF), President Uhuru Kenyatta’s administration submitted plans to apply for Sh253 billion commercial loans with short repayment plans and huge interest rates.
This is in addition to Sh528 billion concessional loans which have favorable repayment plans.
The revelation by IMF will definitely continue to irk Kenyans after they vented their anger at an approval by the lender to give Kenya Sh255 billion in April 2, 2021.
According to the financial institution, this package would help the country to respond to the ravaging Covid- 19 pandemic.
However, Kenyans on social media stormed IMF’s platforms demanding cancellation of the loan and launched a petition on the same.
There has been rising concerns on the ballooning public debt that has seen citizens slapped with more taxes.
According to the 2021 Budget Policy Statement, Kenya’s public debt as of June 2020 stood at Sh7.06 trillion, which is equivalent to 65 percent of GDP. The debt portfolio is projected to surpass the current Sh9 trillion ceiling by the end of the year.
The National Treasury in January revealed plans to whip parliament to raise the debt limit to Sh12 trillion to enable the government to borrow more.