The IMF has stressed the importance of balancing loan acquisition with sound economic policies in Kenya. At a recent meeting, IMF representatives reiterated their commitment to support Kenya’s growth through various funding programs while emphasizing the need for improved governance and oversight of public debt. Lawmakers highlighted the necessity of enhancing parliamentary scrutiny over economic decisions to ensure fiscal responsibility.
The International Monetary Fund (IMF) has urged the Kenyan government to balance the acquisition of loans with sound economic policies. During a meeting with the Parliamentary Caucus on the Parliamentary Network on the World Bank and the IMF, IMF African Department Chief Haimanot Teferra confirmed the request for a new loan and reaffirmed the IMF’s commitment to employing several programs, including the Extended Fund Facility and Rapid Credit Facility, to support Kenya’s medium-term growth.
Teferra emphasized the necessity of establishing robust governance and oversight regarding Kenya’s public debt. Key factors include designing debt thresholds and making amendments to enhance credibility with development partners. She pointed out that reviewing past program targets is critical to understanding the country’s commitments and addressing implementation delays for future initiatives.
The discussions also highlighted Kenya’s current credit status, with Wajir East MP Aden Daud explaining that the country’s public debt has surpassed the threshold established under the Public Finance Management (PFM) framework. He warned that further expenditures may lead to increased debt servicing costs and reduced fiscal flexibility, advocating for improved parliamentary oversight in economic policies and fiscal decisions.
The IMF delegation reiterated that balancing debt acquisition with sound economic policies is essential. Kenya’s ability to honor its financial obligations will significantly impact its appeal to development partners. Continued financial assistance will depend on the nation’s commitment to governance and transparency reforms, which are seen as critical conditions for existing and new support programs.
In summary, the IMF has called upon Kenya to manage its loan acquisition while embracing sound economic policies to ensure sustainable growth. The organization’s commitment to support Kenya hinges on improved governance and economic oversight, especially regarding public debt. The engagement between the IMF and Kenyan lawmakers underscores the importance of parliament’s role in fiscal accountability and the necessity for effective policy implementation to maintain credibility with development partners.
Original Source: eastleighvoice.co.ke
