Kenya Has $35 Billion of Illegal Debt, Disbarred Politician Says
- State spent two thirds of loans in past eight years unlawfully
- IMF categorizes Kenya’s public debt at high risk of distress
Uhuru Kenyatta
Photographer: Andy Rain/EPA/Bloomberg
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Kenyan President Uhuru Kenyatta’s government amassed “unauthorized debt” equal to about a third of the nation’s gross domestic product, according to Jimi Wanjigi, a presidential aspirant disqualified from vying in next month’s elections.
By law, Kenyan authorities must not borrow to spend on recurring expenditure, which can only be funded through taxes. Loans and grants are to finance development projects. Kenyatta’s government used borrowed money to repay loans and for expenditure such as state salaries, which is illegal, according to Wanjigi.