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Uhuru IMF borrowing defended

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[President Uhuru Kenyatta. Photo/PSCU].

Former Labour Cabinet Secretary Samuel Kazungu Kambi has strongly defended the government’s borrowing spree that has sunk the country into huge public debt.

Speaking after Unveiling a Sh 45 Million Challa integrated water resource project in Taita Taveta county, Kambi dispelled rumours that the rising debt is not sustainable terming those opposed to governments borrowing as enemies of development.

The project undertaken by the government through  Coast development Authority CDA is set to benefit hundreds of residents of  Nakuruto and Challa in Taita Taveta county as it will now cushion them from the perennial water shortage and boost Agricultural production.

The National Land Commissioner (NLC) who also doubles as the CDA Chairman  Kambi said the Challa integrated Water resource project will benefit close to 100 small holder farmers in the first phase and boost Agricultural production.

“Those that are asking the government to stop borrowing are enemies of development, if the government fails to seek financial assistance, all our good projects are going to stop, these people are unjustified, “said Kambi.

He said many projects at the Coast are part of the proceeds of a loan facility the government acquired from international borrowers adding that deserving Kenyans will benefit from development.

Corruption

Kambi however, called on the government to seal corruption loopholes in the government so that all borrowed monies go to its intended purpose while sending a caution to Kenyans against attacking the government over borrowing saying Kenyans will suffer should lenders blacklist the government.

[National Land Commission (NLC) Commissioner Samuel Kazungu Kazungu Kambi. Photo/Ahmed Omar].

Kambi who was accompanied by Coast regional Coordinator John Elungata,among other National government and County Government officials  said once the project will be fully complete, it will cost the government an approximate of sh 3.3 Billion shillings in all the three phases.

The backlash

This happens as the international monetary fund (IMF) defended its decision to grant Kenya a Sh255 billion (US$2.34 billion) loan despite public backlash.

In a statement, Antoinette Sayeh, IMF Deputy managing director, said “The Kenyan authorities have demonstrated a strong commitment to fiscal reforms during this unprecedented global shock, and Kenya’s medium-term prospects remain positive.

According to IMF, the loan approved is under two programs, the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) and it’s for an amount of about Sh255 billion.

Secondly, its approval triggered an immediate disbursement of Sh33 billion (US$307.5 million), for budget support, said the Bretton Woods institution.

Thirdly, IMF said the loan is also a continuation of another loan given in May 2020, equivalent to Sh80 billion (US$739 million).