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This is how I will spend 1.8 trillion debt, Ruto defends himself

The World Bank’s Sh 1.8 trillion in financing and the International Monetary Fund’s recent approval of a Sh687 billion loan have both been defended by President William Ruto.

Following his meeting with World Bank President Ajaypal Singh Banga on Monday, November 20, President Ruto expressed gratitude to the global lender for the assistance in a statement.

The two had a meeting in Berlin, Germany, during the G20 Compact with Africa Conference on Economic Cooperation, Promotion of Private Investment.

“We will rebuild our buffers, tame inflation and debt vulnerabilities,” the head of state continued. With this support, Kenya will be better equipped to withstand shocks, move forward with its long-term, robust, and inclusive growth, and expedite the Bottom-Up Economic Transformation Agenda.

The World Bank is now Kenya’s largest development finance partner thanks to this most recent announcement.

The World Bank stated in a press release on Monday, November 20, that the approval of the Sh1.8 trillion ($12 billion) financial package is pending and is contingent upon the bank’s lending capacity.

“So, subject to the World Bank Executive Directors approval of new operations, and to factors which may affect the Bank’s lending capacity, this implies a total financial package of $12 billion over the three years,” the statement continued.

The World Bank has historically played a major role in influencing Kenya’s economic environment as the country’s biggest provider of development financing.

At the moment, Kenya receives about $2 billion (Sh305 billion) in concessional funding annually.

Kenya is presently battling pressure from its large debt load and depletion of its foreign exchange reserves.

Kimani Ichung’wa, the majority leader of the National Assembly, defended the financing facilities, arguing that they are a sign of the international lenders’ confidence.

However, a lot of Kenyans have criticized the financing, arguing that it increases debt and refutes the government’s assertion that the previous administration put Kenya in a deep financial hole.

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