The International Monetary Fund (IMF) has expressed its willingness to give Kenya more loans should President William Ruto’s administration need a credit facility.
Speaking to the media on October 14, IMF African department director, Abebe Selassie, explained that the institution was aiming at helping governments that were struggling to acquire financing from other financial institutions.
However, IMF indicated that it would continue working with Kenya to implement economic reforms.
“We have revolving resources that we need to use to help countries, from those with stronger positions to those in weaker positions.
“The best help we can provide countries like Kenya is providing financing when access to financing elsewhere is more problematic. Should more financing be needed, we, of course, will look at that,” the official stated.
In response to whether IMF would give Kenya relief for its outstanding debt, the financial lender clarified that Ruto had not yet applied for any credit relief.
This was in response to Ruto requesting lenders to offer countries like Kenya offered relief through restructured repayment schedules and other models.
“We have not received such a request from the Government of Kenya, and I think it’s really important for me to explain here that the IMF is akin to a lender of last [resort] to countries,” he stated.
IMF was one of the biggest lenders to Kenya during former President Uhuru Kenyatta’s administration. However, it faced backlash from the citizens who accused it of overburdening the government with loans.
In June 2022, the lender approved a credit facility worth Ksh283 billion for the country’s economic recovery programmes.
Nonetheless, the increasing debt burden has seen the new administration hint at seeking debt relief even though Ruto insists that Kenya will repay its loans.
“I believe it is reckless for anybody to say we cannot pay our debts. I believe that we have what it takes to pay our debts.
“We have a plan as Kenya Kwanza on how to manage debt. We will first slow down on borrowing,” Ruto stated during the Presidential debate in July 2022.
Source: kENYANS.CO.KE
