Kenya’s financial crisis deepens as Western countries vow to stop giving RUTO any more loans due to corruption and bad governance – Look!

Friday, October 4, 2024 – President William Ruto’s government is in dire need of money after Kenya’s financial crisis took a sharp turn.

This is after Western government urged Ruto to consider taking a full audit of corruption and governance before the new funding is approved by the International Monetary Fund (IMF).

The Ksh77.5 billion loan from IMF that Ruto has been hoping for may now be in jeopardy.

The call for this audit is seen as a direct blow to the government's efforts to secure external funding without addressing lingering transparency issues.

According to sources, IMF shareholders, including influential Western nations, are pushing for an unprecedented review of Kenya’s governance.

The IMF has been hesitant to release funds following Kenya’s withdrawal of Ksh346 billion in planned tax hikes, which were shelved after widespread protests earlier this year.

The sources revealed that until Ruto’s government offers a viable solution to its fiscal crisis, future disbursements may remain frozen.

Kenya’s standoff with the IMF has created a ripple effect with talks now circulating about alternative funding options.

The government has reportedly approached the United Arab Emirates for a potential Ksh193 billion loan, seeking to bridge its budget deficit with high-interest loans from Abu Dhabi.

But this option could spell further trouble for Kenya’s fiscal sustainability.

Kenya’s economy, already under strain from shrinking revenues and rising public debt, is now walking tightrope.

According to experts, the country is at a critical juncture where external pressure from the IMF and domestic challenges could spark an economic crisis.

Ruto’s administration is being forced to reconsider its strategies, with fresh discussions on revenue-raising measures becoming inevitable.

The Kenyan DAILY POST