NewsIMF Delay to Cost Uhuru's Govt Ksh28B Loan

IMF Delay to Cost Uhuru's Govt Ksh28B Loan

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  • President Uhuru Kenyatta’s government is likely to wait longer for a loan of Ksh28 billion it had applied for from the International Monetary Fund (IMF).

    A report by Bloomberg on Monday, June 27, indicated that the delay was caused by a meeting yet to be held by members of the IMF board.

    The meeting is scheduled to take place in a few weeks’ time as per an IMF spokesperson the media outlet contacted.

    In a statement, the Kenyan government was encouraged to seek the loan elsewhere before that scheduled meeting that is set to give final approval of the facility. The loan was expected to meet the country’s budget deficit.

    International Monetary Fund office.
    The International Monetary Fund (IMF) offices in Washington, US.
    IMF

    “The modest delay in the timing of the anticipated IMF financing could be mitigated by securing an alternative source of financing,” The spokesperson stated according to the publication.

    This comes barely two months after the government reached an agreement with representatives from the Washing D.C – based lender.

    In April, government officials drawn from the Treasury and the Office of the President held talks to review the IMF Extended Fund (EFF) Facility and Extended Credit Facility (ECF).

    “IMF staff and the Kenyan authorities have reached a staff-level agreement on economic policies to conclude the third review of the 38-month EFF/ECF financed program. Kenya would have access to about Ksh28 billion (US$238 million) in financing once the review is formally completed by the IMF Executive Board.

    “The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks,” read the statement from the April meeting in part.

    At the time, the IMF had noted that Uhuru’s administration had taken steps in addressing the ballooning public debt through various reforms that have seen the country witnessed an increase in revenue collection.

    “Kenya is on track to meet its fiscal objectives and put debt as a share of GDP firmly on a downward path. Kenya’s fiscal position has been underpinned by strong tax revenue performance this year, buoyed by a robust economic recovery and the important tax policy measures already undertaken as part of Kenya’s multi-year plan to reduce debt-related vulnerabilities.

    “Kenya is moving forward on its governance and anti-corruption agenda. Revised documents for government tenders, introduced on April 21, 2022, will enable the publication of beneficial ownership information for successful bidders in government tenders, which will be a requirement going forward,” added the statement.

    Parliament has since raised the debt ceiling in Kenya to over Ksh10 trillion.

    PredidentUhuru Kenyatta addressing the St John Ambulance Volunters at the 92nd inspection parade on Sunday, May 29, 2022..jpg
    President Uhuru Kenyatta addressing the St John Ambulance volunteers at the 92nd inspection parade at State House, Nairobi, on Sunday, May 29, 2022.
    PSCU
    corruption
  • Source: kENYANS.CO.KE

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