Khalwale hangs Uhuru over increased foreign loans

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Former Kakamega senator Boni Khalwale has warned Uhuru of taking excess foreign loans from China.

Uhuru and Raila are in China to seeks an additional Sh368 billion loan to extend the SGR to Western and Kisumu.

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The former states that president Uhuru should be disclosing the information to the parliament for discussion.

Speaking on Citizen TV’s Day the former senator said that there is nothing wrong with borrowing but the information and the process should be made public.

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“There is nothing wrong with borrowing. Just about any working economy borrows. However, why is it a challenge in making full disclosure on the contracts in the Kenyan scenario? Why not allow local companies to be the ones implementing the projects?

The International Monetary Fund officials have said that the country’s excessive borrowing amid huge revenue deficit for the economy is worrying.

Senior IMF representatives for Kenya Jan Mikkelsen, Ben Clements and Nike Hobdari told National Assembly’s Budget and Appropriations Committee chaired by Kimani Ichungwa (Kikuyu) that the debt which hit Sh4.6 trillion in November last year would be unmanageable if the borrowing trend continues.

The IMF warning comes barely two days after the release of a new report by Cytonn Investments warning that the country’s debt would hit a crisis if the state does not invest borrowed funds in projects with high returns to enable the government to repay the debt.



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