RUTO settles a whopping Sh72 Billion loan after China threatened him – Look!

 

Sunday, January 21, 2024 – President William Ruto has settled a Ksh72 billion Chinese loan after the Asian country threatened him.

This was revealed by Treasury Principal Secretary Chris Kiptoo.

Narok Senator Ledama Ole Kina had raised fears that Kenya was likely to default on its international obligations after receiving a Ksh72 billion demand note from China. 

This was in relation to loans advanced to Kenya towards the construction of the Standard Guage Railway (SGR) and other infrastructure projects undertaken by the previous administration. 

“We already settled this debt as we shall do for many others as and when they fall due,” Treasury Principal Secretary Chris Kiptoo stated on Saturday, January 20. 

The PS further assured Kenyans that under the leadership of President William Ruto, the country would not default on any of its foreign loans. 

“Meanwhile, we need to up the conversation on balancing revenue enhancement measures, debt management, and expenditure rationalization,” he added. 

PS Kiptoo did not divulge if the demand note alleged by Senator Ledama had pushed the government to act. 

“Ksh72 billion Chinese loan for the SGR and Northern and Southern Bypass must be paid tomorrow. The Chinese have sent a demand note,” Ledama’s statement that prompted Treasury reply read in part. 

China is the largest lender to Kenya having financed multibillion projects including the SGR which was constructed at a cost of Ksh508 billion (USD3.2 billion) 

On the other hand, the Southern Bypass in Nairobi cost Ksh15 billion while the Northern Bypass was to cost Ksh8.5 billion. 

The Chinese government funded 85 per cent of the Northern Bypass project. 

With China financing most of Kenya’s infrastructure projects, Kenya is expected to continue borrowing from the Asian country. 

The Kenyan DAILY POST.