A defiant President William Ruto has dismissed Moody’s Investors Services’ warning on Kenya’s debt repayment plan.
The credit rating firm had raised concerns that Kenya might face the risk of default if it repaid its Ksh282 billion Eurobond before the maturity date.
While shrugging off the cautionary note from Moody’s, President Ruto stated that Kenya remains steadfast in its decision to buy back half of the bonds, aiming to tackle the country’s escalating public debt.
During a church service at Sagana State Lodge, the President reiterated his determination to proceed with the buyback plan. He asserted that “we have a Ksh282 billion loan that is maturing next year. But we have said we cannot wait until then. In our budget, we have planned on reducing our debt.”
Ulterior motives?
In a remarkable show of defiance, the President launched a scathing critique of Moody’s. He accused the credit rating agency of opposing the government’s move to buy back the Eurobond.
The President suggested that the agency might have ulterior motives, hoping for Kenya to default. According to Ruto, once Kenya defaults, the investors could benefit from increased interest rates.
Ruto firmly asserted that his administration had formed alliances with supportive partners who would help clear the loan ahead of schedule. This would ensure that foreign investors will not find loopholes to exploit Kenya.
Moody’s had warned that Kenya’s early purchase of the bonds at subpar prices might economically disadvantage foreign investors who bought the bonds during former President Uhuru Kenyatta’s tenure.
In response, Ruto credited Treasury Cabinet Secretary Njuguna Ndung’u for devising a brilliant plan to save the country millions in debt repayment.
The Head of State also held his predecessor, Uhuru Kenyatta, accountable for reckless borrowing that nearly plunged the country into negative territory.
“Our first job was to stabilize the economy of our country. We had crippling debt without a proper plan on how to service it,” Ruto added.
