Azimio la Umoja leader Raila Odinga has questioned the Kenya Kwanza government’s move to borrow money in the final days of the 2022-2023 financial year.
In a statement on Tuesday, June 20, Raila claimed that the government in a single day last week borrowed Ksh 213.4 billion from local financial institutions.
“In a single day last week, the Kenya Kwanza administration borrowed Ksh213.4 billion from local financial institutions. This debt has a number of curious and disturbing features,” Raila claimed.
He stated that the single borrowing is almost half the total approved annual domestic borrowing of Ksh438 billion for the year 2022-2023.
Raila asked the William Ruto-led government to explain to Kenyans why it borrowed the money in the last days of the 2023-2023 financial year and where the money is going.
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“Where is all this money going, a week to the beginning of a new financial year? Kenyans deserve a full account. Why such a massive borrowing just about a week to the end of the old financial year and beginning of a new one? Can the regime consume Ksh213.4 billion in one week? Raila questioned.
The Azimio leader also noted that the government's move to borrow at 16 percent would hurt the private sector and small businesses by paying more on their loans.
“Why is the regime deliberately locking out the private sector from the credit market? The government having borrowed at 16 percent, the private sector, including small businesses will end up paying very high interest rates of 24 percent or more on their loans.
"Does the administration understand or care about the impact of this reckless borrowing at extremely high rates, on businesses and individual Kenyans?” He posed.
The opposition chief further questioned why the government announced a Ksh 60 billion bond and the law that was used to change the size of the bond mid-stream.
