Azimio la Umoja leader Raila Odinga has said he will renegotiate short-term commercial loans with punitive interest rates to save Kenya’s economy from collapse should he be elected president on August 9, 2022.
Mr Odinga explained that repayment of short-term commercial loans takes up a huge chunk of Kenya’s budget at a time when the country is reeling under a Sh8.4 trillion debt portfolio.
Seeking favourable terms for such loans, he said, would help the country service the debts while at the same time investing in the economy.
“We have two categories of loans but the short-term commercial debts with shorter times of repayment and higher interest rates are the ones that are punitive and we intend to find a way of renegotiating the repayment rates,” said Mr Odinga.
He was speaking during a meeting with UK MPs at the House of Commons led by UK Prime Minister Boris Johnson’s trade envoy to Kenya, Ms Theodora Clarke.
“This means we’ll continue investing while repaying the debts,” he added.
The ODM party leader said the economy had been ravaged by the Covid-19 pandemic and that it needed to be helped back on its feet.
“Reconstruction is going to be a major challenge post-election. The country incurred huge debts which is a challenge that needs to be dealt with going forward,” he said.
The former premier said he would strengthen ties with the UK, which is a major trading partner, as there are opportunities to be harnessed in the trade and agricultural sectors between the two countries given that Kenya is the gateway to the East African region with regard to trade.
He urged the UK to invest more in agricultural production in Kenya and not to continue importing raw materials.
“We shall create a conducive environment for foreign investors for there to be more foreign direct investment into the economy. This will see more British companies invest in Kenya by addressing constraining factors,” he said.
Mr Odinga promised to unify the country ahead of the August 9 elections and expressed hope that the outcome would not be contentious.
“Post-election, as we re-imagine the future of our country, we will work hard to enhance strategic partnerships with friendly countries across the world; the United Kingdom being one of the key planks,” he said.
“I promise to invest in skills development and technical training to expand our capacity to export labour,” said Mr Odinga.
On enhancing regional trade, he said Kenya would work to ensure stability in the Horn of Africa to harness the region’s economic potential.
The AU Representative for Infrastructure Development in Africa said poor infrastructure was another major setback to intra-Africa trade.
He pointed out that intra-Africa trade stood at 15 per cent, intra-European trade at 70 per cent, intra-Asian at 50 per cent and intra-South American trade at 25 per cent.
“For instance, to move goods from Kenya to Bangui in the Central Africa Republic, which is 1,000 kilometres, one has to go through South Africa then West Africa before arriving in the country,” he said.
