The Umoja Coalition, led by Raila Odinga, has raised concerns about the borrowing activities of the Kenya Kwanza administration. In a statement issued on Tuesday, Azimio, a part of the coalition, accused President William Ruto’s government of borrowing an amount totaling Sh213.4 billion from a local financial institution. They demanded transparency and called for an explanation regarding the utilization of these funds, particularly as the new financial year was set to begin in just one week.
Azimio highlighted the timing of the borrowing, emphasizing that it occurred only ten days before the start of Kenya Kwanza’s inaugural Financial Year, which commences on July 1, 2023. The coalition expressed alarm at the high interest rate of 15.84 percent associated with this borrowing. They questioned whether the administration could plausibly spend such a substantial sum of money, equivalent to almost half of the approved annual domestic borrowing of Sh438 billion for the 2022-23 financial year, within a span of one week.
In addition to seeking clarity on the borrowed funds, the Raila Odinga-led coalition demanded that Kenya Kwanza specify the infrastructure projects that would be financed using the proceeds from this bond issuance within the same one-week timeframe. Azimio alleged that despite the country’s already burdensome debt, the current administration was continuing to borrow significant amounts of money at exorbitant interest rates to settle questionable pending bills owed to politically favored contractors. They further claimed that these actions were being carried out without adhering to legal procedures and were driven by corrupt motives.
The coalition’s statement concluded by presenting a comprehensive six-point demand, urging the government to address these concerns and provide a full account of the borrowed funds. Azimio called for transparency, adherence to legal processes, and an explanation of how such a substantial sum of money would be utilized in such a short period. The opposition coalition raised valid questions regarding the management of public finances and sought to shed light on the government’s borrowing practices, emphasizing the need for accountability and responsible fiscal policies.