- Multi-billion loan expected to help country improve its medium-term fiscal sustainability and debt indicators amid COVID-19 pandemic
- World Bank Kenya Country Director Keith Hansen said the money would be used for reforms in various sectors, including health, education and energy.
- From the KSh 3.6 trillion budget presented by Yatani, the Kenya Revenue Authority is expected to generate KSh 2. trillion in revenue, leaving a huge hole that needs to be filled.
PAY ATTENTION: Help us change more lives, join TUKO.co.ke’s Patreon program
Kenya secured a KSh 80.9 billion loan from the World Bank, a day after Cabinet Secretary of the Treasury Ukur Yatani read the 2021/2022 budget.
The multibillion-dollar loan is expected to help the country improve its fiscal sustainability and medium-term debt indicators amid the COVID-19 pandemic that has ravaged the economy.
World Bank Kenya Country Director Keith Hansen said the money would be used for reforms in various sectors, including health, education and energy, which have been hit hardest by the pandemic. .
Okiya Omtatah and Wanjeri in court demand the cancellation of the 2021/2022 budget
âIn recognition of the gravity of the crisis and the need for a comprehensive response, we support the government’s post-COVID-19 economic recovery strategy, which is designed to mitigate the negative socio-economic effects of the pandemic and accelerate economic recovery and achieve higher and sustained economic growth, âsaid Hansen by Citizen TV.
PAY ATTENTION: Click “See first” under the “Follow” tab to see news from Tuko.co.ke on your FB feed
According to a report by NTV Kenya, the funds would also be used to support policy reforms, including transparency in public procurement and the restructuring of state agencies such as Kenya Power.
From the budget of KSh 3.6 trillion presented by Yatani, the Kenya Revenue Authority is expected to generate KSh 2. trillion in revenue, leaving a huge hole that needs to be filled.
As part of this, the Treasury plans to borrow more than KSh 900 billion on local and international markets during President Uhuru Kenyatta’s penultimate fiscal year.
Kenyan Newspaper Review June 11: Winners and Losers in the 2021/2022 Budget
The public treasury plans to borrow at least KSh 2.6 billion per day, which will put pressure on the already crushing public debt.
Kenyans ask IMF
The country’s total debt is expected to rise from KSh7.7 trillion to KSh 8.6 trillion by June 2022, when the 2021/2022 budget is fully implemented.
Kenyans in April asked the International Monetary Fund (IMF) to stop adding to the country’s debt because it might not be able to repay it.
The majority have called on the Washington-based lender to reject Kenya’s future loan applications, saying the huge borrowing will only serve to put the country in debt.
Do you have a groundbreaking story that you would like us to publish? Please contact us via [email protected] or WhatsApp: 0732482690. Contact TUKO.co.ke instantly.