Connect with us

Hi, what are you looking for?

Capital News
Deputy President William Ruto paid a courtesy call to Mzee Jackson Kibor, a prominent farmer in Rift Valley, at his Elgon View residence in Uasin Gishu County.


DP Ruto warns against over-reliance on foreign loans

NAIROBI, Kenya Feb 22 – Deputy President William Ruto has cautioned against the government’s over-reliance on foreign loans which he said derails development.

Ruto said it was time the government re-strategized on how to fund its operations and development as opposed to over-reliance on loans.

“This year alone we are going to pay a trillion shillings to service our debts and it is necessary for us to rethink on how we can develop more resources locally and reduce our reliance on borrowing,” he said on Monday in Kapseret in Uasin Gishu County.

Ruto, who has been critical of the government lately following a bittler fall-out with President Uhuru Kenyatta, warned that the government’s increased appetite for loans to finance development in the country would be detrimental and maintained that the Kenya Revenue Authority (KRA) has the capacity to collect enough tax that would in turn finance Kenya’s needs.

Treasury Cabinet Secretary Ukur Yatani admits that Kenya’s debt level is sustainable even though classified as high risk.

“We need to reduce the amount the country is borrowing outside. The youths need to be empowered, given jobs and through that way they will be able to pay taxes which will contribute immensely to the government development agenda,” he said.

President Kenyatta recently asked him to resign instead of criticizing the government from within, to which he responded saying he is in Jubilee to the end as the elected Deputy President.

While restating his position that the clamour for constitutional change in the country through the Building Bridges Initiative (BBI) was a misplaced priority, Ruto emphasized that there is need for the government to focus on the Big 4 agenda that the Jubilee administration had pledged to accomplish.

Advertisement. Scroll to continue reading.

In his submission before the Senate Finance and Budget Committee, CS Yattani noted that the debt level is “sustainable but classified as high risk”.

In his submissions detailing the 2021 medium term debt strategy, CS Yattani noted that the debt strategy entails active debt management operations to lengthen the maturity structure of domestic debt by issuing more Treasury Bonds and less Treasury Bills and replacing external commercial short-term debts with longer dated debt instruments to smoothen the debt service maturity structure.

While the domestic debt market has been the major source of funding of the fiscal deficits providing about a half of the financing needs, CS Yattani stated that the market remains shallow and dominated by commercial banks.

Click to comment

More on Capital News


Malabo, Equatorial Guinea, March 8 – At least 20 people were killed and hundreds injured after four accidental explosions ripped through a military camp in...


KAMPALA, Uganda, March 8 – Uganda on Sunday received a second batch of 100,000 doses of the AstraZeneca COVID-19 vaccine from India. Ruth Aceng,...


Ouagadougou, Burkina Faso, March 8 – Six people including civilians were killed when a military detachment was ambushed in northern Burkina Faso, security sources said...


New York, United States, March 8 – Prince Harry’s wife Meghan Markle on Sunday said she contemplated taking her own life after joining the royal...


Saturday's elections were a key test of stability four months after the violence before and after a presidential vote claimed 87 lives in the...

Corona Virus

The pair were asked to step down after reports they had attended a dinner in Amman with a total of nine people, when the...


The hurriedly planned rally had been seen as the ODM’s leader's chance to address a 24-hour disquiet among his loyalists, who accuse unnamed powerful...


ARBIL, Iraq Mar 7 – Pope Francis held the largest mass of his historic Iraq trip Sunday after visiting war-scarred cities to comfort Christian...