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Finally IMF Explains On It’s Loan To Kenya After Kenyans Refused It

Shadrack Olaka




The President Kenyatta’s Jubilee administration has been receiving accusations of over-borrowing, ending up putting Kenyans into a long-term debt trap.

The IMF says that it gave Kenya a loan of Ksh 255 billion to help it to be able to contain the public debt.

The lender which posted the statement on its official website on Wednesday, 7th of April, said that Kenya was going through financial distress being resulted by the accrued debts which it was servicing.

It also revealed that another reason was that KQ needed new wings to be able to remain in the skies.

In addition, IMF said that Kenya found itself in a pool full of debts following the Covid-19 pandemic that ravaged its economy.

The international body also said that some of the financial challenges faced by Kenya had been outlined in the 20220/2021 financial year budget, hence clarifying that not all the money that has been lent to Kenya was to be used on emergency needs such as Covid-19 effects.

The International Monetary Fund said that Kenya was failing in meeting its budget financing, therefore clipped in to give a helping hand so the country can have a disposable amount to allow for normal governance operations as it settles its other foreign and domestic debts.

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It further suggested that the money allocated to Kenya can be used for easing the debt burden.

The IMF says it is optimistic that Kenya’s economy will bounce back once Covid-19 hardship reduces.

The global lender explained that it has, however, put measures in place to ensure the money loaned is not stolen by graft lords.

Some of these measures include asking Kenya to put in public procurement information including beneficial ownership data of companies that won the contracts, to publicize an audit of all Covid-19 related expenditures in the Financial Year 19/20. interest rules.

Kenyans on social media platforms expressed their disgruntlement, others even signing a petition, seeking to stop the disbursement of the new loan by IMF to Kenya.

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