The IMF has received a request for a new financing programme from Kenya. The existing review under current fund facilities will not proceed. Kenya’s debt levels necessitate continued support from the IMF following protests that halted tax hikes. Finance Minister Mbadi confirmed it pertains to a financing programme.
The International Monetary Fund (IMF) has officially received a request for a new financing programme from the Kenyan authorities. The IMF stated it would engage with Kenya concerning this request, as mentioned in a recent communication. However, it clarified that there will not be a ninth review of the existing extended fund facility and extended credit facility programmes.
While specific details regarding the type of programme being sought by Kenya were not disclosed by the IMF, Finance Minister John Mbadi previously indicated to Reuters that it pertains to a financing programme. The Kenyan economy, facing increased debt-servicing costs due to significant borrowing over the past decade, continues to rely on the IMF’s support to maintain economic stability.
In recent developments, the Kenyan government has been actively seeking new sources of financing following last year’s deadly protests, which led to the cancellation of plans to increase revenue through tax hikes. The IMF’s involvement remains critical as the country navigates its fiscal challenges.
In summary, the IMF’s engagement with Kenyan authorities signifies the country’s pressing need for financial assistance amidst rising debt costs. The request for a new programme underscores the ongoing economic challenges faced by Kenya, exacerbated by civil unrest which disrupted revenue-raising efforts. As the situation develops, the IMF’s role will be vital in steering the Kenyan economy towards stability.
Original Source: theprint.in
