Kenya now free from list of countries running risk of debt default - Ruto

Kenya now free from list of countries running risk of debt default - Ruto

President William Ruto addressing the press in Naivasha on Kenya's Successful Settlement of a Substantial Part of its 2014 Eurobonds on February 21, 2024. PHOTO| COURTESY

President William Ruto on Wednesday announced that Kenya's economy is back on track and that the nation is living within its means.

Speaking in Naivasha, Nakuru County, the president said that his government has made deliberate steps to manage the nation's debt crisis by pursuing what he terms a "turnaround strategy".

The strategy, Ruto added, has been used to increase the nation's tax revenue and reduce spending to tame debt accumulation rates.

Ruto further noted that the strategy has enhanced investor confidence which has resulted in the appreciation of the shilling against the US dollar, from Ksh.162 to Ksh.142 and massively lowered the debt ceiling.

"In turn, this has reduced our overall debt by Ksh.722 billion, and also reduced our debt service costs by Ksh.195 billion over the next 6 years, saving the country a total of Ksh.917 billion," he said. 

Following the "sacrifices and determined efforts" by the government, Ruto said that Kenya has now been delisted from the nations that run the risk of defaulting their debt.

"It is necessary for us to inform the country where we stand today, especially after the anxiety of the last year where many in the international community were worried about Kenya's financial ability to manage our situation including our debt situation," he said.

"I can now confidently say Kenya is no longer on the list of the countries that run the risk of debt default."

Owing to the economic resuscitation, Ruto expressed confidence that the economy will skyrocket noting that there will be enhanced liquidity in the market.

"We are now going to see an easing of interest rates and less appetite to borrow in the domestic market and therefore more enterprises and the private sector [will] access resources to spur economic activity in the country and use the private sector to be economic drivers," he noted.

The Head of State also stated that Kenya on Tuesday successfully paid Ksh.218.25 billion ($1.5B) of Ksh.291 billion ($2B) 2014 Eurobond that were scheduled to mature on June 24, 2024.


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