By Robai Ludenyi
Kenya is once again knocking on the door of the African Development Bank in search of fresh funding, even as citizens continue to struggle under the weight of past loans.
The National Treasury has opened discussions with the regional lender to secure new financing for infrastructure and development projects. While the government argues that the funds will support key sectors such as energy, transport, water and agriculture, many Kenyans are questioning whether taking on more debt is the right move at this time.
Over the past few years, the country has borrowed heavily both locally and internationally leading to rising debt repayment obligations. A significant portion of government revenue now goes into servicing loans instead of funding essential public services. This has contributed to higher taxes, reduced disposable income and increased pressure on businesses and households.
Officials insist that the new funding being sought from the African Development Bank would come on concessional terms, meaning lower interest rates and longer repayment periods compared to commercial loans. However, critics argue that regardless of the terms, a loan remains a loan and it will eventually have to be repaid by taxpayers.
The renewed borrowing talks come at a time when many Kenyans are already feeling the impact of previous debt decisions through increased levies, fuel price adjustments and rising living costs. Small businesses are grappling with high operating expenses, while ordinary families are adjusting to tighter budgets.
There are also concerns about how borrowed funds have been used in the past. Questions about accountability, stalled projects and cost overruns continue to surface, leaving citizens wary about whether new funds will truly deliver meaningful economic relief.
If approved, the proposed financing would go toward infrastructure and development programmes. As negotiations progress, the debate is likely to intensify: Is this strategic financial management, or another step toward expanding a debt burden that future generations will have to carry?
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