The National Treasury has now sought a Sh75 billion loan from the World Bank, to boost the Big 4 Agenda.
This comes barely a month after President Kenyatta jetted back to the country empty handed from an expedition to China.
The president reportedly flew off to seek yet another Chinese debt towards the extension of the Standard Gauge Railway (SGR), but in vain.
The Chinese Communist Government heard us loud and clear and turned down Uhuru Kenyatta and @RailaOdinga. They understand now that the tens billions of shillings they have loaned for the SGR have mostly been pocketed by Muhoho Kenyatta. Patriots, SAY NO!https://t.co/hj8TXENg65
— Dr. Miguna Miguna (@MigunaMiguna) April 27, 2019
The World Bank’s loan application however, faces opposition due to Kenya’s not-so-remarkable loaning history.
Some countries with representation on the bank’s board,according to a Daily Nation report, have cited weak financial public management systems and challenges, such as the one the government faced in trying to account for Eurobond proceeds. The type of loan is hardly suitable for Kenya, it is said.
On its part however, the National Treasury states that the fund is meant to fund the Big 4 agenda.
According to the project document on the bank’s website, the loan will enable the government to crowd in private investment and financing for affordable housing; enhance farmer incomes and food security; create fiscal space to allow the government to invest in key development programmes; and crowd in private investment and leverage digitisation to support the government’s inclusive growth agenda.
Looming havoc still glares at the Kenyan economy if this loan is to go through.
The type of credit Kenya has sought is a quick-disbursing facility where money flows straight into the budget to top up the public purse.
Under the regime of former President Mwai Kibaki, Kenya kept away from this type of credit and most of the support from the World Bank came in the form of project support- Nation reports.
Nevertheless, a report by the Parliamentary Budget Office (PBO) last week showed that the Treasury was masking the true budget deficit by using a set of numbers that ignore adjustments.
The budget experts also accused the Treasury of overshooting the budget ceiling given by Parliament and approved through its own Budget Policy Statement (BPS), which is prepared months ahead of the budget.
The PBO said the 2019/2020 budget is higher than the approved ceiling by Sh78 billion.