NAIROBI, Kenya June 1 – President Uhuru Kenyatta has defended loans taken by his administration saying they helped accelerate development in the country.
Speaking during the Madaraka Day celebrations at the Uhuru Gardens, the head of state castigated those who hit out at his government saying the results can clearly be seen.
“The only time that debt is a burden to a nation is if the nation is led by a cabal of looters. But in the hands of a visionary administration, debt is a catalyst for rapid development,” he said.
The Head of State answered critics saying his decision to borrow from the South Korea economic growth in a record 25 years aided Kenya tremendously.
“In just one generation they were at par with the West. The afro-pessimist will tell you that Kenya cannot replicate this ‘miracle’. But they are wrong. Our accelerated path to economic growth has begun and must be maintained by the incoming administration,” President Kenyatta stated.
The President stated that through loans, Kenya in just 9 years has moved from being the 12th largest economy in Africa, to being the 6th.
He however noted that for growth to continue, it will be upon the next administration to ensure funds are not stolen by corrupt individuals.
“And the National Question to us today is not whether debt is good or bad. The more legitimate question has to do with what the next administration will do with borrowed funds. Will they end up in private pockets or will they be used to accelerate economic advancement? “President Kenyatta posed.
“The only time that debt is a burden to a nation is if the nation is led by a cabal of looters. But in the hands of a visionary administration, debt is a catalyst for rapid development,” he added.
Latest data from the Central Bank of Kenya indicate that the country’s public debt stood at Sh9 trillion as of December 2021, comprising Sh4 trillion in domestic debt and Sh4.2 trillion in external debt.
The lawmakers raised the debt ceiling to the current Sh9 trillion from Sh6 trillion previously in October 2019.
President Kenyatta’s administration has relied on loans to build roads, bridges, power plants and the standard gauge railway (SGR) since they took power nine years ago.
This has ballooned public debt from Sh1.89 trillion the Jubilee administration inherited from retired President Mwai Kibaki to a projected Sh8.59 trillion by end of this fiscal year in June.
This means Kenyatta’s government will have borrowed at least Sh6.7 trillion by the time he leaves office.
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