New report reveals how Kenya Kwanza Gov’t borrowed Ksh.223.5B in five months

The Kenya Kwanza administration borrowed Ksh223.5 billion in five months, this is according to a report from the National Treasury.

The report submitted to Parliament shows that the government took 11 loans between September 1, 2023 and January 31, 2024 amounting to the said amount.

According to the report, the loans were meant to improve financial viability of Kenya Power and increase access to electricity, increase employment, earnings, and promote savings for targeted youth at national scale.

The loans were also to support Kenya’s North Eastern region in achieving its full economic potential and improving the socio-economic welfare of its population, to enhance revenue mobilization and deepen accountability and transparency of public finance management at the national government level among other reasons.

The first loan taken was signed on October 23, 2023 between the OPEC Fund for international development amounting to Ksh.5.8 billion meant to “support Kenya's North Eastern province in achieving its full economic potential and improving social economic welfare.”

“More specifically, the project shall create new job opportunities because of new transportation possibilities, improved market access and create the possibility of labour migration,” the report reads.

On December 6, 2023, the government borrowed Ksh.14.2 billion from international Development Association (lDA) to the National Youth Opportunities towards the advancement project ostensibly to increase employment, earnings, and promote savings for targeted youth.

The country also borrowedKsh.28.5 billion towards the Kenya Green and Resilient Expansion of Energy Program to improve financial viability of Kenya Power and increase access to electricity.

Ksh.36.9 billion was also borrowed to enhance revenue mobilization and deepen accountability and transparency of public finance management at the national government level.

The country further borrowed Ksh.4.3 billion from the International Development Association (lDA) to increase access to irrigation water for project beneficiaries, enhance the institutional framework, strengthen capacity for water security and climate resilience in certain areas of the territory of the recipient.

In an effort to increase viability of Kenya Power, the government went ahead to borrow another Ksh.28.5 billion to increase access to electricity.

To enhance revenue mobilization and deepen accountability and transparency of public finance management at the national government level, the government borrowed Ksh.36.9 billion from IDA.

The government also took a Syndicated Term Loan Facility of Ksh.30.6 billion to fund the “development projects; refinancing or repurchase of Eurobonds issued by the borrower, and payment of any fees, costs and expenses in connection with the finance documents.”

The health sector also benefited from the loans taken, as they got Ksh.17 billion to strengthen the health system resilience and multi-sectoral preparedness and response to health emergencies in Kenya.