A report by the National Treasury has revealed billions the government reportedly borrowed both internally and from external financiers last month.
According to the national treasury, the government allegedly borrowed Ksh90 billion in March, to add to the multi-billion loans acquired by the Kenya Kwanza government.
The report suggested that the Ksh90 billion was a consolidation of Ksh58 billion acquired through domestic borrowing and Ksh32.77 billion acquired through external lenders.
The proceeds went into covering the budget deficit in the current fiscal year and facilitating different government projects including infrastructural development.
However, this amount is projected to increase further in the coming months as the government seeks to extend its fund pool through the acquisition of more loans.
Kenya's debt currently stands at Ksh10 trillion, this is according to a report by the Central Bank of Kenya. The reduction in the country's debt was attributed to the strengthening of the local currency.
Similarly, during the Month of March, the government spent Ksh86 billion in repaying maturing loans acquired by the government in the previous years.
The government also spend another Ksh50 billion to finance other development projects including road construction and water projects.
In February this year, the National Treasury released a report revealing that the Kenya Kwanza government borrowed Ksh233 billion within 5 months, from September last year to January this year.
The Ksh233 billion was a consolidation of 11 different loans which the treasury noted would be repaid periodically until 2053.
Kenya Power was among the parastatals that benefitted from the loans with the utility firm receiving capital injection to boost access to electricity.
According to the report, the loans were also taken to enable the government to roll out projects geared at increasing employment.
