NAIROBI, Kenya, Feb 21 – Kenya’s overall debt has declined by Sh722 billion, President William Ruto has confirmed, coming just a few days after the government successfully raised $1.5 billion to repay a previous Eurobond that was to mature on June 24, 2024.
The Head of State also announced that the debt service cost had declined by Sh195 billion.
As of December last year, Kenya’s debt stood at about Sh11.14 trillion, highlighting the growing dependence of the state on debt to fund projects.
Ruto linked the improvement to strategies his administration has adopted for the economy since assuming power in 2022.
“We have pursued a turnaround strategy focused on increasing our tax revenue and reducing both spending and the rates of debt accumulation,” the president said during the conclusion of a three-day Cabinet retreat at Naivasha.
“Through this process we have been guided by the principles of equity, fairness and prudence in public spending without sacrificing priority, social and development spending,” the President added.
He maintained that the government is keen on ensuring sound debt management through the implementation of an array of strategies, which included the diversification of financing sources anchored on smoothening the maturity profiles of the country’s debts.
This, Ruto indicated, has steered the country away from debt distress and stabilized the economy.
Last week, he stated that the sale of the country’s Eurobond is proof that the country can now settle its debts.
“We have put in place robust measures to ensure that Kenya never again gets into serious debt challenges. We will plan our affairs well,” he said.
