Loan or financing program? Ruto government receives Sh400 billion for projects
The Kenyan government on May 2, 2023 received Sh400 billion from AfriExim Bank Kenya and the African Export-Import Bank (AfriExim).
In a statement, State House referred to the money as a financing program aimed at boosting its agenda.
Nairobi News has since established the Sh400 billion is a loan guarantee and grant to be disbursed over a period of three years.
According to the government the deal is anchored on the Bottom Up Economic Transformation Agenda.
President Ruto who witnessed the signing of the deal by the Treasury Cabinet Secretary Njuguna Ndung’u and AfriExim President Benedict Oramah noted that the program will support the government’s priorities in enhancing the capacity of critical commodities, agriculture, water harvesting, construction of industrial parks and investment in the digital superhighway.
“AfriExim came in handy and supported our recently concluded fuel importation deal; this eased pressure on our foreign reserves,” President Ruto said.
He explained that the program’s facility will also strengthen the capacity of Kenya National Trading Corporation to meet its obligations to import affordable fertiliser, dry commodities and edible oil.
“This support in importations has been critical in helping us reduce the cost of basic foods, including unga.”
According to the government, Sh110 billion of the fund will be spent on the construction of 200 dams to provide water for irrigation, domestic use and livestock.
“With the deteriorating water levels due to climate change, it is important that we maximize water harvesting.”
Also, the program will support the government’s industrialization efforts, especially the development of Industrial Parks and five special economic zones in Nakuru, Busia, Kirinyaga, Thika, and Eldoret.
However, this is contrary to what president Ruto promised during his campaigns.
During his campaigns, Ruto criticized former President Uhuru Kenyatta for taking loans and promised that his government will try to reduce the loans.
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