Kenya: Duale Defends Eurobond II, Says Kenya's Debt Manageable

Treasury secretary, Henry Rotich.
25 February 2018

National Assembly Majority Leader Aden Duale has said that the multi-billion shillings loan secured by the government on Thursday was factored in the 2017/2018 budget by the Treasury Cabinet Secretary.

This comes amidst an uproar by economists, some Kenyans and leaders following the decision by the government to borrow Sh200 billion from international financiers.

Joining other leaders including Deputy President William Ruto who have defended government's appetite for borrowing amid concerns that the country's debt is rising to an unsustainable level and that the debt load could become unmanageable, Mr Duale said that Treasury CS Henry Rotich had explained to Parliament how Kenya would repay the loan.

DEBT LEVEL

The Garissa Township MP said that the country has the capacity to repay the loan and that the debt level in Kenya compared to its gross domestic product (GDP), which is now at 56 percent, is positive and sustainable compared to many other countries.

He said that the debt level of United States of America to its GDP stood at 100 percent while Japan's is at 200 per cent of the GDP and that of the United Arab Emirates (UAE) is at 185 per cent compared to its GDP, yet the countries have thriving economies.

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