President William Ruto has announced that Kenya will pay a significant $300 million of its $2 billion bond by December. 

In Summary:

• Kenya to reservice $300M of its $2 Billion by December 2023 according to President Ruto.

• Kenyans dubbed persevering for facing more tax increments.

This move reflects Kenya’s commitment to managing its rising debt and and encourages economic optimism.

Ruto’s State of the Nation address begins with the national anthem/Photo Courtesy

“I can now confirm …with confidence that we will and we shall pay the debt that has become a source of much concern to citizens and markets,” said Ruto during his first State of the Nation address.

These remarks by Ruto could enhance the creditworthiness of Kenya. It could also positively influence investors and creditors to put their finances behind Kenya’s economy.

Nairobi city skyline/Photo Courtesy

These supposed repayments come at a time when many African countries are struggling with the economic impact of the international wars and a recession in their individual industires due to the pandemic.

International markets will probably monitor Kenya’s progress in meeting president Ruto’s pledges.

Tax Increases For Kenyans

President Ruto, in his statement, emphasized that the loan repayments had become a reality due to the persevering nature of his subjects.

Various new tax rates and levies have been introduced. This is as a result of the Finance Act 2023. The taxes include a housing levy chargeable on personal emoluments. Further, the VAT rate on fuel has been standardised to 16% while the rate of capital gains tax has been increased to 15%.

The Kenyan Shilling/Photo Courtesy

Access fees to public facilities like game reserves and city parks has also in the last fiscal quarter.

Even though the supreme court had stopped this increment in for review, the Kenya Kwanza regime aimed to increase public service provision by almost a hundred percent.

President Ruto seems hell-bent on proving his naysayers wrong in his bid to improve the country’s economy. Only time will tell whether his remarks will indeed become a reality. We’ll be right here to shine a spot light either way. Rudi Nyumbani.

November 10, 2023

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