President William Ruto has announced that the US is helping Kenya Identify sources of cheaper loans.
In a statement issued on Monday, December 9, the Head of State revealed meeting United States Under Secretary for International Affairs Jay Shambaugh, State House Nairobi.
He also detailed that some of the affordable funding being explored in the partnership includes the International Development Association (IDA) run by the World Bank.
Through the IDA programme, the World Bank offers 75 countries loans at zero to lower rates.
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Additionally, Ruto detailed that the government was exploring Special Drawing Rights run by the International Monetary Fund. The funding programme also offers lower interest rates which are mostly below 5 per cent.
"Kenya and the US signed the Washington-Nairobi Vision during my State Visit in May in an effort to seek more concessional financing for our country and, indeed, other developing nations to enable us to build our economies," read the statement in part.
"Consequently, the US has been working with Kenya in identifying alternative sources of affordable funding for governments and the private sector. These include the World Bank's IDA21, Special Drawing Rights and debt swops, among others."
Kenya relies on loans to finance its budget deficits. Some of the loans taken over the years have proved costly given the high interest rates.
Notably, Ruto also met with IMF Deputy Managing Director Nigel Clarke at State House to discuss various programmes being undertaken in the country.
"Kenya and the International Monetary Fund (IMF) have an excellent relationship that has yielded demonstrable results in the past 60 years. In emerging from a difficult economic situation, Kenya has counted on the IMF and other partners," he added.
"Our debt burden is easing, inflation is at 2.7 per cent - the lowest in 17 years, while foreign exchange reserves at $9.5 billion are the highest ever. Additionally, production of the staple food, maize, and sugar is meeting national demand."
