Treasury Principal Secretary, Chris Kiptoo, has officially confirmed the settlement of the KES 72 billion loan associated with the Standard Gauge Railway (SGR). This announcement follows concerns raised by Narok Senator Ledama Ole Kina, who suggested the possibility of Kenya defaulting on its debt payment.
On January 19, Senator Ledama Ole Kina expressed apprehension about Kenya’s ability to meet its global commitments after receiving a Ksh72 billion demand notice from China related to the SGR project. He questioned whether Kenya had the funds to meet this financial obligation.
In response, Treasury Principal Secretary Kiptoo promptly reassured the public of the government’s commitment to fulfilling all its debt obligations. He clarified that the KES 72 billion loan, designated for the SGR and various infrastructure projects initiated by the previous administration, had already been cleared. Kiptoo emphasized that the government, under President William Ruto’s leadership, is dedicated to meeting its financial responsibilities and will not default on any loans.
Furthermore, Kiptoo urged for a broader discussion on strategies to enhance revenue, manage debt effectively, and rationalize expenditures. He highlighted the ongoing efforts to balance these financial aspects while ensuring the country’s fiscal sustainability.
Throughout the years since the inception of the SGR project, Kenya has demonstrated progress in repaying portions of the loan. Negotiations and adjustments have been undertaken periodically to ensure the project’s financial viability and the country’s ability to honor its financial commitments.
