Kenyan President William Ruto is scheduled to embark on a trip to China later this month with the aim of securing a $1 billion (£820 million) loan to fund road projects that have come to a standstill, as revealed by his deputy, Rigathi Gachagua.
Gachagua conveyed this information during an interview on Inooro FM radio in a local language. He highlighted that numerous construction contractors across the country had halted their projects due to non-payment for their work.
Despite Kenya’s already substantial debt to China, President Ruto intends to request an additional $1 billion, simultaneously seeking an extension of the repayment period for existing debts. The essence of the request to China is essentially, “We acknowledge our existing debt; can we engage in discussions to extend the repayment schedule, allowing for a more gradual repayment, and could you consider providing additional funds to facilitate the completion of our road infrastructure?”
Currently, Kenya owes China over $8 billion, with most of the loans having been acquired during the tenure of former President Uhuru Kenyatta to finance various infrastructure projects.
Deputy President Gachagua also addressed concerns related to the extravagant spending of government officials. He explained that this was one of the primary reasons why the President had initiated measures to restrict foreign trips.
Earlier in the week, the Kenyan presidency issued a directive prohibiting public officials from undertaking non-essential foreign trips in an effort to reduce government expenditure. Additionally, all ministries have been instructed to reduce their budgets for the upcoming fiscal year by 10%.
These austerity measures have been introduced in response to widespread complaints from Kenyan citizens regarding the escalating cost of living and the imposition of tax hikes by the government, with accusations of excessive government spending playing a central role in the discontent.