Treasury responds to statement on 1.4Bn China fine.
Ukur Yatani, Cabinet secretary Treasury responds to statement circulating on Kenya being fined because of SGR loan defaulting.
Outgoing Treasury Cabinet secretary refutes claims of China fining Kenya 1.3Bn because of the SGR loan default.
Read More debt as China fines Kenya 1.31Bn on defaulting of SGR Loan
Treasury termed the reports as not true adding that the country has not failed in servicing the credit.
Ukur Yatani further expressed confidence in Kenya’s economy, adding that all loan obligations will be met.
Ukur stated,”We wish to state categorically that Kenya has never defaulted on the settlement on its debt services obligations to any of its creditors, nor has any creditor filed or reported any claim of default on debt service payments on facilities extended to the Government of Kenya.
“Furthermore, Kenya has not accumulated any debt arrears in decades to suggest difficulties in debt servicing,”the statement added.
Treasury also highlighted that Kenya has not in any way been locked out by its lenders on claims that it is a lower middle income country.
Treasury statement read,”As a country accessing international financial markets to raise resources, Kenya undergoes frequent independent sovereign rating reviews whose outcomes are published widely. At no time has Kenya been flagged as a country defaulting on its external debt obligations.”
“It is also important to note, that all public debt, including the SGR loans are paid from the Consolidated Fund in accordance with the Public Finance Management Act, 2012. Debt service is a first charge on the Consolidated Fund and takes precedence over other forms of expenditure,” Treasury added.