Co-operative Bank appoints new Board chairman Next Story
Kenya Railways threatens top managers of RVR Previous Story
You are here  » Home   » Business News

Treasury has borrowed a record Sh430 billion in four months

By Moses Nyamori | Published Thu, September 14th 2017 at 00:00, Updated September 13th 2017 at 23:07 GMT +3
Treasury Cabinet Secretary Henry Rotich. Photo: Jenipher Wachie, Standard 

The Government borrowed Sh430.6 billion in four months, further sinking the country into debt.

The latest borrowing has pushed the debt level significantly past Sh4 trillion, a new record for the country.

A report by the National Treasury to Parliament indicates that the latest borrowing was done between the month of February and June this year, months before the country entered the electioneering period.

The report contains a total of 29 loans, mostly bilateral and multilateral, that the Government says will be used to finance development projects in various parts of the country.

"The value of the total new loans signed are equivalent to Sh430.6 billion out of which Sh156 billion from two commercial creditors have been disbursed.

"The proceeds are expected to achieve the country's development agenda. The proceeds are mainly to fund infrastructure projects including roads, irrigation and water supply, energy, health, and education," says the report to Parliament.

Signed loans

Among the loans the Government has signed is Sh33.3 billion to fund the construction of Arror Dam, which it says will increase water availability for irrigation and domestic use.

Another Sh31.3 billion and Sh4.4 billion loans will be spent on the construction of Kamwarer Dam Tranche II and I respectively for irrigation water.

The administration has a signed another Sh10.9 billion to finance the East Africa Community (EAC) and the Kenya- South Sudan regional corridor.

The government says this project will ease access to various markets as well as movement of goods and services to spur economic growth. The project, it says, will also open boarders for trade and economic development.

For the education sector, the Government has borrowed Sh14 billion for laboratory projects in technical and vocational training colleges.

Another Sh1 billion has been borrowed to improve a cancer centre at Kisii hospital. The Government says the fund will help improve the quality of health services at the hospital.

And Sh8.9 billion loan has been signed for the expansion of the Kenya Power transmission expansion project to improve supply stability and lower the cost of transmission.

Another Sh10.9 million was borrowed for the Last Mile Connectivity Programme. 


RECOMMENDED