Deputy President William Ruto has defended the Jubilee government’s borrowing spree that has sunk the country into a Sh4.8 trillion debt.
The Eurobond, the second in a span of four years, will cost taxpayers a total of $3.2 billion (Sh323 billion) in interest payments during its lifetime of up to 30 years, according to early calculations and the International Monetary Fund (IMF) which said Kenya needs a credible plan to tackle its fiscal deficit, which is the main driver of borrowing.
Speaking in Nyeri County when he commissioned the construction of Kiawara-Ngaringiro road on Friday, the Deputy President dispelled fears that the rising debt is not sustainable.
The country’s second in command stressed that the money will fund infrastructure projects as President Uhuru Kenyatta seeks to realise his ‘Big Four’ action plan.
While justifying the borrowing, Ruto alluded to the infamous Anglo Leasing and Goldenberg Scandals that rocked former President Mwai Kibaki’s administration as proof why Kenyans should have faith in the current government’s fiscal discipline.
"There’s been a lot of debate on the government’s borrowing. I want to assure Kenyans that before borrowing, the government made projections on what we need to spend on and our ability to pay that loan. I can reassure Kenyans that we want to initiate development projects that will spark economic growth in the country,” said Ruto.
The Deputy President was speaking for the first time since the government successfully issued the Euro Bond II at the London Stock Exchange on Friday.