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Gachagua says fresh China loan on the cards, rejects overborrowing claims

Brian Murimi by Brian Murimi
October 6, 2023
in News
Reading Time: 2 mins read

In a wide-ranging radio interview that aired Friday, Deputy President Rigathi Gachagua staunchly defended the Kenya Kwanza administration against criticism that it has overborrowed and poorly managed the economy in its first year.

“The allegations that the government has overborrowed in the last one year isn’t truthful; We have, instead, paid a substantive amount of debts,” Gachagua said on Inooro FM.

However, the deputy president revealed that President Ruto would soon travel to China to renegotiate existing debt and borrow an additional KES 150 billion to complete stalled infrastructure projects.

“We are going to borrow KES 150 billion to complete stalled roads. The president will soon be travelling to China to negotiate that loan and also seek extension of credit service for earlier loans.”

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On the recent Cabinet reshuffle by President William Ruto, Gachagua dismissed speculation that ministers were reshuffled for poor performance. “There is no one who was removed from office,” he said. “There is no need to read too much into the President’s reshuffle.”

Gachagua said Ruto was simply exercising his presidential prerogative to “organise and reorganise his team” and asked those given new mandates “to work with diligence and commitment and ensure that their work is visible to the public.”

Read more: COTU slams proposed forex hoarding bill as ‘retrogressive’

On healthcare, Gachagua said the administration was taking a community-focused approach to get better results. He highlighted efforts to support over 100,000 volunteer community health workers.

“They have been facilitated with proper equipment. We shall appreciate them every month for the good work they are doing,” Gachagua said. “We want to empower these community health promoters to do even more for citizens at the local level.”

The deputy president acknowledged challenges remain on coffee reforms aimed at dismantling cartels, but asked farmers to “be patient” and expressed confidence that successes in the tea sector would be replicated.

“If we have turned around the tea fortunes of the farmers, we will win the war on coffee,” he vowed.

Gachagua said an upcoming deal between farmers and consumers would deliver “guaranteed minimum returns” and higher incomes for farmers. “The moment we have a deal with the coffee consumer, the farmer will definitely laugh last,” he said.

He reported progress in the war on illicit brews, putting completion at 70%. Gachagua said he would engage leaders across society to build on these gains.

Finally, Gachagua dismissed rumors of divisions with Ruto as unfounded. “My relationship with the President is top-notch,” he said. “We shall continue working hand-in-hand for Kenyans until the end of our term.”

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Brian Murimi

Brian Murimi

Brian Murimi is a communications and advocacy professional with a focus on innovation, policy and continental development in Africa. A former journalist, he now works at the intersection of knowledge, strategy, and pan-African institution building.

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