‘Kenya will never be expected to pay $2B at a go’ – Ruto

President William Ruto has assured Kenyans of the country’s stability and pledged to citizens that the nation would not be overwhelmed by debts.

Speaking on Tuesday during the Second National Executive Retreat in Naivasha, Nakuru County, Ruto applauded the National Treasury for its measures in financial management.

“We must never be in the kind of situation that we have been in the last two years where everybody in the world is waiting for us to go down. That is why what the treasury did was very important,” Ruto declared.

“Even in the management of debt, they have now made sure that there will be no time that Kenya will be expected to pay 2 billion dollars in one go,” he stated.

The Head of State noted the need for reorganization to dispel any perceptions of economic peril.

“We must reorganize ourselves so that there is no perception that will be created that Kenya is in danger because when you create that perception, you fuel a lot of speculations and we end up with a situation like when the dollar went up to 160,” Ruto remarked.

$2B Eurobond

In December 2023, the National Treasury clarified its stance regarding the payment of the $2 billion Eurobond amid earlier reports suggesting a potential delay.

Treasury CS Njuguna Ndung’u issued a statement affirming Kenya’s commitment to meeting its debt obligations with international lenders.

The statement highlighted the recent payment of $68.7 million in interest, emphasizing Kenya’s dedication to fulfilling its financial commitments through prudent revenue management.

“In its unwavering commitment to upholding a resilient sovereign credit rating and facilitating access to new development financing, Kenya remains dedicated to fulfilling all debt obligations with international lenders,” the statement said in part.

Adding

“Recently, Kenya successfully executed a payment of $68.7 million (equivalent to Ksh10.8 billion) in interest, a necessary instalment on the $2 billion Eurobond. This financial commitment, achieved through the prudent use of revenue collections, underscores Kenya’s steadfast dedication to meeting external obligations.”

Furthermore, the Treasury noted that timely settlement of interest payments on the Eurobond not only boosted investor confidence but also contributed to a decrease in yields on Kenya’s Eurobonds in global financial markets.

“The final interest payment on this Eurobond is scheduled for the last week of June 2024, alongside the repayment of the principal amount of $2 billion. Since July 2023, the government has diligently implemented a comprehensive plan for debt service payments, combining revenue and concessional financing to retire high-cost debts within the national debt portfolio,” the statement added.