President William Ruto has cautioned Kenyans of tough economic times as his administration moves to service Kenya's pending debt including the Eurobond.
While addressing Parliament on Thursday, Ruto confirmed that the country will be paying the first batch of the Eurobond loan worth Ksh500 billion in December.He acknowledged that the government had already laid the groundwork for servicing its loans including engaging with various development partners and financial institutions since assuming office in September 2022.
"Next month in December we will be able to settle the first USD 300 million or Ksh500 billion installment of the USD 2 billion Eurobond debt that falls due next year. I can now confirm with confidence that we will and shall pay the debt that has become a source of much concern to citizens, markets, and our partners," he stated.
"The new direction may not be easy but it is ethical, responsible, prudent, and most importantly necessary. We have had to make hard decisions and make painful choices because we owe the people of Kenya to do the right things and to confront facts as they are."
Ruto explained that the payment of the loans was necessary warning that the move would have an impact on Kenyans who are experiencing a high cost of living.
He maintained that Kenya had an obligation to pay the debts noting it was the most responsible thing to do.
Ruto added that Kenya would be in debt distress if the necessary steps had not been undertaken.
However, he maintained that the country could not return to the subsidies to cushion Kenyans from the shocks of the harsh economic times.
Conversely, he intimated that he had taken a key focus on supporting the agricultural sector in a bid to reduce the high cost of food commodities.
For instance, he cited the drop in maize flour prices including rolling out a fertiliser subsidy program which his government expects to boost agricultural productivity.
"As a country, we were living large and living beyond our means. The time has come therefore to retire the false comforts and illusionary benefits of wasteful consumption by which we dug ourselves deeper into the hole of avoidable debt." the Head of State affirmed.
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