Raila eyes talks to reduce cost of short-term loans in Kenya


Economy

Raila eyes talks to reduce cost of short-term loans in Kenya


UK Armed Forces Minister James Heappey (left) and ODM Chief Raila Odinga discuss security issues with a view to strengthening our ties in the future. PICTURES | BOWL

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Summary

  • Odinga said finding favorable terms for these loans will help the country pay off its debts while having money to invest in the economy.
  • He was speaking at a meeting with UK MPs in the House of Commons led by Prime Minister Boris Johnson’s trade envoy to Kenya, Ms Theodora Clarke.
  • The ODM party leader said the economy has been hit hard by the Covid-19 pandemic and what Kenya currently needs is an economic revival to get it back on its feet.

Opposition leader Raila Odinga will renegotiate short-term commercial loans with punitive interest rates to prevent the collapse of Kenya’s economy, if he wins the August 9 presidential election.

Odinga said finding favorable terms for these loans will help the country pay off its debts while having money to invest in the economy.

“We have two categories of loans, but short-term commercial debt with shorter repayment periods and higher interest rates are the ones that are punitive and we intend to find a way to renegotiate the rates of refund,” Odinga said.

He was speaking at a meeting with UK MPs in the House of Commons led by Prime Minister Boris Johnson’s trade envoy to Kenya, Ms Theodora Clarke.

“This will allow the economy to not only focus on paying debts but also to continue investing,” he added.

The ODM party leader said the economy has been hit hard by the Covid-19 pandemic and what Kenya currently needs is an economic revival to get it back on its feet.

“Reconstruction is going to be a major challenge after the elections. The country has incurred huge debts, which is a challenge that must be addressed in the future,” he said.

The former prime minister said he would strengthen relations with the UK, which is a major trading partner, as there are opportunities to be tapped in the trade and agricultural sectors between the two countries, with Kenya being the gateway to entry of the East African region in terms of trade.

He said he was looking for more UK investment in agricultural production in Kenya.

“We will create an enabling environment for foreign investors to bring more foreign direct investment into the economy and more UK businesses to invest in Kenya by addressing the constraining factors,” he said. .

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