The National Treasury has denied recent claims made by the Controller of Budget regarding the interest rates on loans acquired by Kenya from the International Monetary Fund (IMF) and World Bank.
In a swift rebuttal to recent assertions made by the Controller of Budget regarding the interest rates on loans obtained by Kenya from the International Monetary Fund (IMF) and World Bank, the National Treasury labeled them as sensational and inaccurate.
The Controller’s claims, which suggested exorbitant interest rates of 14.5 percent on the loans, have been dismissed by the National Treasury, warning that such misleading statements could sow confusion among Kenyans and strain the country’s relationships with crucial development partners and foreign investors.
“Contrary to the Controller’s remarks, Kenya does not hold any loans from the IMF or World Bank with interest rates as high as 14.5 percent,” stated Njuguna Ndung’u, the Cabinet Secretary of the National Treasury.
According to the Treasury’s clarification, loans from these multilateral institutions carry interest rates ranging from 0 to approximately 6.74 percent. Presently, Kenya’s outstanding debt to the IMF amounts to US$2.68 billion, while debts owed to the World Bank under various windows total US$12.3 billion.
Ndung’u stressed the importance of transparency and provided links to detailed information on loan products offered by the IMF and World Bank, encouraging the public to verify the facts independently.
“The Controller of Budget has access to all loan contracts and underlying documentation, maintained in the Public Debt Management Office,” Ndung’u asserted, highlighting the rigorous annual audits conducted by the Office of the Auditor General.
The Treasury urged the Controller of Budget to disseminate accurate information to the public, emphasizing the integrity of the Constitutional Office.
