The Kenya Kwanza gov’t borrowed Ksh.223.5B in five months, per a report from the National Treasury. The report to Parliament details 11 loans acquired between September 1, 2023, and January 31, 2024, totaling the mentioned amount.
The loans aimed to enhance Kenya Power’s financial viability and increase electricity access, employment, earnings, and savings for the youth on a national scale. They also aimed to support Kenya’s North Eastern region in unlocking its economic potential and improving socio-economic welfare.
The first loan, signed on October 23, 2023, with the OPEC Fund for International Development, amounted to Ksh5.8 billion. It specifically aimed to support the North Eastern province’s economic potential, creating job opportunities through improved transportation and market access.
On December 6, 2023, a Ksh14.2 billion loan from the International Development Association (IDA) went towards the National Youth Opportunities Advancement project, focusing on youth employment, earnings, and savings.
Ksh28.5 billion was allocated towards the Kenya Green and Resilient Expansion of Energy Program, emphasizing the improvement of Kenya Power’s financial viability and broader electricity access.
To deepen accountability and transparency in public finance management, the government borrowed Ksh36.9 billion. Simultaneously, an additional Ksh4.3 billion from the IDA was for increasing access to irrigation water, strengthening institutional frameworks, and enhancing capacity for water security and climate resilience.
In a dual effort to boost Kenya Power’s viability and expand electricity accessibility, the government secured an extra Ksh28.5 billion. Additionally, another significant borrowing involved a Syndicated Term Loan Facility of Ksh30.6 billion, designated for development projects, refinancing Eurobonds, and covering associated fees and costs.
Furthermore, the health sector received Ksh17 billion to fortify resilience and preparedness to respond to health emergencies effectively in Kenya. These loans collectively emphasize the government’s commitment to multifaceted development and economic sustainability.
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