The Kenya Kwanza administration under the leadership of William Ruto has continued to come under serious criticism just barely eight months into power. The administration has mostly been put on the spot on their borrowing and spending spree that has even surprised the Azimio Coalition.
In the recent expose that has left many Kenyans in mummers was the report that the Kenya Kwanza administration has borrowed a whooping KSH 213.4 billion in a span of one week. This report has now made the Azimio Coalition leader Raila Odinga go came out demanding an explanation from the Kenya Kwanza administration regarding the alleged borrowing of Ksh. 213.4 billion just one week before the start of the new fiscal year.
While questioning the reason for such a borrowing, Raila called it a suspicious borrowing adding that the state should be transparent about the increased debt. Raila questioned about where the significant internal debt came from, how timely it was in relation to the contentious Finance Bill 2023’s passage, and why it had an excessively high interest rate of roughly 16% compared to other local lenders.
“With the ongoing focus on the Finance Bill providing a perfect cover, the Kenya Kwanza administration has in recent days engaged in a suspicious spree of borrowing which the Azimio Coalition Party demands clarity on. In a single day last week, the Kenya Kwanza administration borrowed Ksh.213.4 billion from local financial institutions. This debt has a number of curious and disturbing features. First, it took place just ten days before the start of Kenya Kwanza’s inaugural Financial Year, which begins on July 1, 2023. Secondly, this money was borrowed at an extremely high-interest rate of 15.84 per cent.” Odinga stated.
At the same time, Raila demanded to know where the money was going to given that there was clear reason on the use of the said money. Raila also questioned why would the government borrow such a huge amount of money just one week into the new financial year.
“Where is all this money going, a week to the beginning of a new financial year? Kenyans deserve a full account. Why such massive borrowing just about a week to the end of the old financial year and the beginning of a new one? Can the regime consume Ksh.213.4 billion in one week?” Raila questioned.
by: DrArogo