While presenting the 2022/2023 budget in parliament on April 7, the National Treasury agreed on taking loans and grants to finance the projects in President Uhuru Muigai Kenyatta’s final budget. They also said that the loans would help finance the projects in various ministries and State Departments. Here are a number of loans Uhuru plans to take before leaving office.
READ ALSO: CS George Magoha talks on KCSE 2022 release date
Unlike the previous years when China was the main lender, the Treasury revealed that Japan will be Kenya’s biggest lender in the financial year 2022/2023.
Mega loans Uhuru plans to take before August
The government of Kenya is expecting to receive Ksh31,110,167,854 from the government of Japan. Out of the Ksh 31 billion, the treasury revealed that Ksh 17 billion will go to the Ministry of Transport while Ksh. 9 billion will go to the Ministry of energy.
Kenya will also get Ksh29,459,000,000 from the Government of China, which is her second biggest lender.
The treasury also disclosed that they are expecting to get a loan of Ksh. Ksh23,363,935,788 from the Government of France.
Other Mega loans Uhuru plans to take include;
1. Ksh14,423,512,807 from Germany
2. Ksh6,065,700,000 from Italy
3. Ksh4,561,124,881 from Belgium
4. Ksh3,686,000,000 from South Korea
5. Ksh2,656,000,000 from Spain
6. Ksh1,549,929,500 from Denmark
7. Ksh1,077,731,000 from the Government of Sweden.
Apart from getting loans from foreign governments, the treasury also said that they expect Ksh. 100 billion loan from the World Bank and the International Monetary Fund (IMF).
Interest rates
Speaking on interest rates, the CS Treasury Ukur Yatani said the government was opting for low interest loans.
“Kenya’s debt carrying capacity is rated moderate and the overall public debt is sustainable. We have initiated the implementation of a set of measures to lower cost and risk in the public debt portfolio.
“The preferred debt financing are highly concessional loans offered at below-market interest rates with long repayment periods. Recourse to commercial borrowing has been maintained at minimum levels,” he stated.
READ ALSO: School heads put forth strict rules ahead of schools reopening next week
The above are the Mega loans Uhuru plans to take before leaving office in August. Follow us daily and know new stories as they come every moment.
READ ALSO:
- School heads propose fee increase, say the cost of living is too high
- Kenyans demand justice for woman and son who were mercilessly whipped by in-laws
- Ezra Chiloba biography, age, tribe, family, education, wife, children, current job, salary, net worth, latest news
