RUTO pulls a first one as he turns down a Sh161 billion loan from Trade Development Bank – Look! This is unlike him

 Wednesday, January 31, 2024 - President William Ruto has surprised Kenyans for the first time since taking over as President.

This is after he declined a whopping Sh161 billion loan from the Trade and Development Bank (TDB). 

This comes even as Ruto has been moving around the world with a begging bowl and taking loans from right, left, and center despite vowing never to take a loan for the sake of the country.

While speaking in Rome, Italy, Ruto revealed that Kenya was foregoing a Ksh161 billion ($1 billion) syndicate loan offered by the Trade and Development Bank (TDB). 

The revelation was made a few hours after President Ruto called for a comprehensive reform agenda for Multilateral Development Banks and asked for increased concessional loans. 

Syndicate loans entail more than one lender merging to offer a single large loan. This credit system can be expensive and complex to manage, unlike concessional loans offered at favourable rates that are sometimes lower than market value. 

Ruto stated that his administration was no longer counting on the bank to deliver the loan as earlier agreed on October 2023.

It should be noted that before Ruto made the pronouncement, Kenya had already received Ksh34 billion from TDB.

The now-turned-down Ksh161 billion syndicated loan from TDB was aimed at boosting Kenyan foreign reserves and further settling external debts maturing in 2024.

Putting faith in Kenya’s economic standing, Ruto remarked that it was no longer necessary to settle for an expensive syndicate loan. 

A country like Kenya approaches financial institutions like TDB, Bank of China, or J.P Morgan for a huge loan. 

If the financial institution agrees to extend the loan, it assumes the responsibility of finding several lenders who will pool resources to raise the cash. 

The Kenyan DAILY POST.