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Give us details on EU loan, legislator says

Emgwen MP Alex Kosgey (left) chats with Deputy President William Ruto at a past function. An attempt to unseat Mr Kosgey on the basis of absenteeism suffered a blow after the Privileges Committee said missing plenary sittings did not mean a lawmaker was not working.  PHOTO | JENNIFER MUIRURI |

By FAITH NYAMAI
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A member of parliament on Sunday demanded full disclosure on what the government intends to do with the Sh520 billion loans and grants deal it signed with the European Union last week.
Emgwen MP Alex Kosgey said the public has a right to be told what the funds will be used for, given that the decision has added to the country’s debt burden, which currently stands at Sh5.146 trillion.
FULL DISCLOSURE
“This information is simply not forthcoming. Our attempt to get the information from Treasury has not been successful. There’s need for full disclosure on what the half a trillion shillings will be used for,” he told the Daily Nation.
He further expressed disappointment that in signing the agreement, Treasury did not disclose which proportion is loans and which one grants.
Last week, Treasury Cabinet Secretary Henry Rotich signed the five year €4.5 billion (Sh520 billion) loans and grants deal with the European Union, which was represented by its ambassador to Kenya, Stefano Dejak.
The fresh loan deal comes amid growing concerns about the ballooning repayment costs that are hurting economic activities by taking up a large chunk of government revenue.
On Sunday, Mr Kosgey, who has already proposed an amendment Bill to the Public Finance Management Act to cap government borrowing, said it was not right for the government to continue borrowing without divulging repayment plans.
Kenya plans to spend Sh870.5 billion on debt repayments by June next year, from Sh435.7 billion the year that ended June 2018, against expected taxes of Sh1.76 trillion.
“The amount in question is more than the Sh215 billion Eurobond that was not accounted for. Kenyans need to be told what the cash is for and the repayment plan,” he said.

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