President Uhuru Kenyatta was on Friday attacked on social media by a controversial blogger for allegedly preventing two banks linked to his family from writing off their loans to Kenya airways.
Blogger Robert Alai alleges that the head of state is pushing for the government to write off loans to Kenya Airways but he doesn’t want CBA and NIC banks to write off the loans to the same.
The blogger further questions why Kenyans should be impoverished and not people’s personal companies.
He says that If the government will write off loans to KQ, then NIC and CBA should also write off theirs.
“Uhuru is pushing for the govt to write off loans to KQ but he doesn’t want CBA and NIC to write off the loans to the same. Yaani Kenyans should be impoverished and not their companies? If govt will write off loans then NIC and CBA should also write off theirs. Awuoro!!!” the blogger tweeted.
Last month, Treasury took a new Sh20 billion loan to help Kenya Airways repay another loan it borrowed from African Export-Import Bank (Afrexim) two years ago.
The new 10-year loan was borrowed in June last year from Eastern and Southern African Trade and Development Bank (TDB) and replaces a similar-sized debt by Afrexim Bank that had fallen due.
The loan is among several transactions undertaken by the government and other creditors including debt-to-equity conversions to stave off collapse of the national carrier.
It will cost the government at least Sh2 billion in interest expenses and other charges, as per the terms of the debt.
“The loan was borrowed to refinance and cancel the 2016 syndicated loan facility borrowed to support the turnaround process of Kenya Airways through the restructuring of its balance sheet,” reads the Treasury document.
It will be repaid in 10 equal, semi-annual tranches from June 21, 2019 through to June 21, 2029.
The interest rate on the dollar-denominated loan is set at the six months London Inter-bank Offered (Libor) Rate, a global benchmark currently standing at 2.6 percent, plus a 6.45 percent premium.