Ruto Lobbies for Chinese Support as Kenya Battles Rising Debt

President William Ruto's visit to China is focused on securing concessional loans and funding for crucial infrastructure projects. However, this could exacerbate Kenya's already significant debt burden. As of June this year, Kenya's public debt stands at Sh10.56 trillion, up from Sh8.58 trillion in June 2022, shortly before President Ruto assumed office.

The debt is expected to rise further as the government plans to borrow Sh761 billion for the 2024/25 financial year, an increase from the previously planned Sh597 billion due to the rejection of the Finance Bill 2024. This borrowing will likely push the fiscal deficit to 4.2 percent of GDP, up from 3.3 percent.

Despite rarely leaving Nairobi since June due to Gen Z protests, President Ruto attending the 9th Forum on China-Africa Cooperation (FOCAC) summit, seeks to bolster trade, investment, and regional security ties with China. Key among his achievements is Kenya's formal membership in the Asian Infrastructure Investment Bank (AIIB), which will provide access to funding for infrastructure, climate change initiatives, and other development projects.

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