Thursday, April 8, 2021 – The Government of President Uhuru Kenyatta has asked the International Monetary Fund to suspend loan repayment until after Covid-19.
Speaking during a bilateral meeting with the Director of the Africa Department at the International Monetary Fund (IMF) Adebe Selassie to discuss key issues involving the country’s economy, Treasury Cabinet Secretary Ukur Yattani, highlighted IMF’s support in helping Kenya mitigate the effects of the Covid-19 pandemic as well as address structural reforms, including a request to suspend debt repayment to cushion the economy against the current debt vulnerabilities.
Earlier in the year, Kenya had secured a six-month debt suspension deal from the Paris Club of international creditors under the Debt Service Suspension Initiative.
He also commended the IMF on the recent approval of the controversial Ksh255 billion loan by the IMF executive board.
“We note with appreciation, the Executive Board’s approval of Kenya’s funding request which will not only strengthen our response to the Covid-19 pandemic but also help us reduce our debt vulnerabilities through revenue fiscal consolidation, as well as address structural and governance weakness,” he stated.
The bilateral meeting also focused on three key areas: Kenya’s economic performance during the pandemic, preparations for the World Bank’s third Development Policy Operation for Kenya and the push for an extension to the Debt Service Suspension Initiative (DSSI).
The Treasury CS also highlighted four major sectors expected to undergo reforms to achieve inclusive growth.
Among these sectors include the electricity sector, human capital, natural capital and fiscal reforms.
The news comes after the majority of Kenyans raised concerns regarding the rising debt crisis alluding to the recent approval of the Ksh255 billion IMF loan.
An unofficial petition urging the international body to cancel the loan approval has seen over 250,000 Kenyans sign the petition.
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