The IMF has received a request from Kenyan authorities for a new financing programme as it engages with the government on this matter. A review under existing facilities will not proceed, reflecting ongoing economic struggles in Kenya due to high debt-servicing costs and prior failed revenue plans. Finance Minister John Mbadi previously indicated that the request pertains to financing.
The International Monetary Fund (IMF) has officially received a request from Kenyan authorities for a new financing programme aimed at stabilizing the country’s economy. In a statement issued on Monday, the IMF noted that it will engage with the Kenyan government regarding the details of this request.
The IMF clarified that there will be no ninth review under the current extended fund facility and extended credit facility programmes. While specifics about the new programme requested by Kenya remain unspecified, Finance Minister John Mbadi previously indicated that it would focus on financing.
Kenya’s economy is experiencing difficulties due to rising debt-servicing costs, largely a result of extensive borrowing over the last decade. Following significant protests last year, the government has been actively seeking new financing options after having to withdraw a proposal to increase revenue through tax hikes.
This new engagement with the IMF is critical for Kenya, as ongoing support from the lender is essential to maintain economic stability amidst these financial challenges. The situation reflects the government’s urgent need for financial assistance to navigate the current economic landscape.
The IMF’s formal receipt of Kenya’s request for a new financing programme underscores the urgent need for financial assistance as the nation grapples with rising debt-servicing costs. The government’s previous attempts to generate additional revenue through tax hikes were hampered by public protests, prompting the search for new financing solutions. Continued collaboration with the IMF will be crucial for Kenya to stabilize its economy moving forward.
Original Source: theprint.in
