Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-02-18 20:11:57
President William Ruto’s administration made significant expenditures to service the external debt over the first half of the 2023/2024 Financial Year, as detailed in the Quarterly Economic and Budgetary Review released by the National Treasury. A total of Ksh104 billion was spent between July and December 2023, with payments made to 18 foreign nations and various financial institutions.
The review highlighted that payments were made to foreign nations such as Abu Dhabi, China, Saudi Arabia, and the United States. Furthermore, financial institutions like the World Bank and the Asian Development Bank received payments totaling Ksh49 billion, while commercial loan payments amounted to Ksh85 billion.
The National Treasury reported that the cumulative debt service payments to external creditors reached Ksh239.6 billion by the end of December 2023, with principal payments accounting for Ksh134.6 billion and interest payments for Ksh105 billion. China received the largest share of repayments at Ksh72 billion, primarily related to the Standard Gauge Railway and other Chinese-sponsored infrastructure projects.
Kenya also made substantial payments to European Union countries and Gulf Countries. In the European Union, payments were made to Belgium, Denmark, Finland, France, Germany, Italy, Poland, Austria, and Spain. Gulf Countries including Abu Dhabi, Kuwait, and Saudi Arabia received payments, with the latter providing fuel to Kenya on a 180-day credit line under the Government to Government oil deal.
Other countries that received loan repayments from Kenya include India, Israel, Japan, Korea, and the United States. Notably, Kenya paid Ksh32 billion to the International Development Association (IDA), a World Bank subsidiary, and made a relatively small payment of Ksh181 million to the United States, the leading shareholder of the World Bank.
Furthermore, financial institutions such as the International Bank for Reconstruction and Development, the Asian Development Bank, and the International Fund for Agricultural Development (IFAD) also received substantial loan repayments. Surprisingly, Kenya did not make any payments to the International Monetary Fund (IMF) for the first half of the 2023/2024 financial year.
These payments reflect the government’s commitment to servicing the country’s external debt obligations. President William Ruto has been actively engaging with leaders and officials from various international financial institutions and countries, as evidenced by his meeting with the World Bank Regional Vice President for Eastern and Southern Africa and his participation in a round-table with the Presidents of France, the Managing Director of the International Monetary Fund, and the President of the World Bank Group.
As Kenya continues to navigate its external debt obligations, the government’s financial decisions and interactions with international entities are crucial in ensuring the country’s economic stability and growth.
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