In his oath of office, President William Ruto pledged to reduce Kenya's dependency on debt, arguing that the country could generate enough revenue to support itself. The Kenya Kwanza administration borrowed a total of KSh 506.9 billion between September and November 2022, according to data from the Central Bank of Kenya (CBK). The amount was nearly twice what the government of former president Uhuru Kenyatta borrowed on average each quarter.
The amount was almost twice as much as the government of former president Uhuru Kenyatta's average quarterly borrowing, according to Daily Nation. The daily equivalent of the borrowing was almost KSh 5.57 billion. According to the report, KSh 114.4 billion of the total debt was external debt, while KSh 392.5 billion (77.3%) was obtained from the domestic market.
The new administration borrowed KSh 132.69 billion in September 2022, KSh 110.2 billion in October, and KSh 219.75 billion in November, according to the CBK's monthly economic analysis.
On Tuesday, July 26, at the Catholic University of Eastern Africa (CUEA) during the 2022 presidential debate, the head of the United Democratic Alliance (UDA) committed to put a stop to borrowing.
"We will first slow down, put brakes on borrowing, put brakes on unbudgeted projects; we need to raise our own revenues. We have areas that we believe we can raise revenues from. We can actually raise 90% of all collectable Value Added Tax (VAT), for example," Ruto explained.
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