Strange Borrowing in the Final Days of 2022-2023 Financial Year

PRESS RELEASE;

JUNE 20, 2023.

STRANGE BORROWING IN THE FINAL DAYS OF 2022-2023 FINANCIAL YEAR:

With the on-going focus on the Finance Bill providing a perfect cover, the Kenya Kwanza administration has in recent days engaged in suspicious spree of borrowing which the Azimio Coalition Party demands clarity on.

In a single day last week, the Kenya Kwanza administration borrowed Ksh213.4 billion from local financial institutions. This debt has a number of curious and disturbing features.

First, it took place just ten days to the start of Kenya Kwanza's inaugural Financial Year, which begins on July 1, 2023.

Secondly, this money was borrowed at an extremely high interest rate of 15.84 per cent.

Thirdly, this single borrowing is almost half the total approved annual domestic borrowing of

Ksh438 billion for the year 2022-2023. Last week's borrowing of Ksh213.4 billion came despite the fact that the regime has been borrowing all year. In light of this weird move by Kenya Kwanza, Azimio La Umoja would like the administration to provide clarity on the following concerns:

1. Where is all this money going, a week to the beginning of a new financial year? Kenyans deserve a full account.

2. Why such a massive borrowing just about a week to the end of the old financial year and beginning of a new one? Can the regime consume Ksh213.4 billion in one week?

3. What is the impact of this single borrowing on market liquidity?

4. Why is the regime deliberately locking out the private sector from the credit market?

The government having borrowed at 16 percent, the private sector, including small businesses will end up paying very high interest rates of 24 percent or more on their loans. Does the administration understand or care about the impact of this reckless borrowing at extremely high rates, on businesses and individual Kenyans?

5. In this latest borrowing, the regime had announced a prospectus of a Kshs60 billion bond. What law did the regime use to change the size of the bond mid-stream?

6. Can Kenya Kwanza point out the infrastructure projects that will be financed by the bond proceeds in one week?

Azimio is convinced that that despite the country being deep in debt, the Kenya Kwanza administration is continuing to borrowing money at extremely high rates to pay questionable pending bills owed to politically correct contractors, without following the law, in return for bribes.

We are serving notice to the National Treasury and all ministries involved in this borrowing, that a day is coming, not very far from today, when all these sins will have to be answered for, and some officers may carry individual responsibility.

Rt. HON. RAILA ODINGA

JUNE 20, 2023.