The IMF confirmed a new loan request from Kenya and emphasized the importance of aligning debt acquisition with sound economic policies. Highlighting the need for enhanced governance and oversight of public debt, the IMF also noted that Kenya’s ability to meet financial obligations is critical for attracting development partners. Key discussions involved managing public debt and parliamentary scrutiny of economic policies.
The International Monetary Fund (IMF) has acknowledged the Kenyan government’s new loan request, as confirmed by Haimanot Teferra, Chief of the IMF African Department. During a meeting with the Parliamentary Caucus on the World Bank and IMF in Kenya, Teferra reiterated the IMF’s readiness to employ various financial frameworks including the Extended Fund Facility to support Kenya’s economic growth.
Teferra mentioned that a structured approach is necessary for managing Kenya’s public debt more effectively. This includes establishing debt thresholds and making amendments to improve credibility and trust with development partners. She asserted, “Reviewing past programme targets is essential to understanding Kenya’s commitments,” which would assist in recognizing implementation delays and making adjustments for successful future outcomes.
The discussion, led by Wajir East MP Aden Daud, focused on Kenya’s current credit status. Aden highlighted that the country’s public debt has surpassed the limits outlined in the Public Finance Management (PFM) framework, which, without appropriate oversight, may elevate debt servicing costs and constrain fiscal space. He committed to enhancing parliamentary oversight of economic policies through cooperation with relevant committees.
The IMF delegation stressed that balancing debt acquisition with sound economic policies is vital for Kenya’s fiscal health. This balance will influence the country’s capacity to satisfy financial obligations, which in turn affects its appeal to development partners. Governance and transparency reforms were identified as crucial contingencies for ongoing financial support under current and future programmes.
The IMF has called upon Kenya to manage its debt carefully while implementing robust economic policies. The emphasis on governance and oversight is essential in ensuring the country’s financial stability. As Kenya seeks further financial assistance, the focus on transparency and fiscal responsibility will play a significant role in attracting development partners and maintaining economic growth.
Original Source: eastleighvoice.co.ke
