The alleged borrowing of Ksh13 trillion by former President Uhuru Kenyatta and current President William Ruto has ignited debate and concern among Kenyans. The controversy centers around claims that these funds were borrowed without proper approval, raising questions about transparency and accountability in the management of public finances.
During Uhuru’s regime, Kenya’s debt reportedly blew to over Ksh6.7 trillion, with substantial loans taken to finance infrastructure projects such as the Standard Gauge Railway (SGR). Critics argue that the borrowing lacked adequate oversight, leading to a debt burden that has strained the country’s economy.
The repayment of these loans has become a pressing issue, with Kenya struggling to meet its obligations. For instance, in December 2023, Ruto’s government repaid Ksh10.8 billion as interest on a Eurobond loan secured during Uhuru’s administration.
Under Ruto’s leadership, the borrowing trend has continued, with over Ksh2.4 trillion borrowed since September 2022. The government has justified this borrowing as necessary to repay maturing loans and stabilize the economy. However, concerns have been raised about the lack of parliamentary approval for these transactions, which some argue violates constitutional provisions.
Treasury officials have defended the borrowing practices, stating that all withdrawals followed strict legal and financial procedures. They emphasized that transactions were subject to review and approval by the Controller of Budget, ensuring compliance with public finance regulations.
Additionally, the Treasury has implemented measures to enhance transparency, such as launching an automated system to streamline the processing of exchequer requests. Despite these assurances, the public remains skeptical. The alleged borrowing without approval has fueled calls for greater accountability and oversight in the management of public funds. Critics argue that the lack of transparency undermines trust in government institutions and poses risks to Kenya’s economic stability.
