IMF Advocates for Responsible Loan Management in Kenya
The IMF urges Kenya to balance loan acquisition with effective economic policies, emphasizing governance and debt management. Haimanot Teferra, speaking at a parliamentary meeting, confirmed a new loan request and highlighted the necessity of reforms for continued funding. Key legislative scrutiny of public debt was also discussed to ensure financial stability.
The International Monetary Fund (IMF) has urged the Kenyan government to balance its approach to loan acquisition with sound economic policies. Haimanot Teferra, Chief of the IMF African Department, confirmed that the IMF received a new loan request from Kenya and expressed commitment to support the country through various facilities aimed at enhancing its medium-term growth prospects.
During a meeting with the Parliamentary Caucus focused on the World Bank and IMF, Teferra underscored the necessity for Kenya to reassess its public debt governance. She emphasized that establishing clear debt thresholds and reinforcing credibility among development partners are essential.
The discourse also focused on Kenya’s credit status, with Wajir East MP Aden Daud highlighting that public debt has surpassed the permissible limits under the Public Finance Management (PFM) framework. He called for improved scrutiny of economic policies to ensure that fiscal decisions effectively address the challenges of increasing debt servicing costs.
The IMF representatives reiterated the critical need for Kenya to harmonize its financial obligations with prudent economic governance. They noted that Kenya’s ability to honor its debts significantly affects its attractiveness to potential development partners. Governance and transparency reforms were emphasized as vital components for the continuity of financial assistance under existing and prospective IMF programs.
In conclusion, the IMF has emphasized the necessity for Kenya to approach future loans with sound economic policies and effective governance. The discussions highlighted the importance of legislative oversight in managing public debt, and the crucial role that transparent reforms play in maintaining Kenya’s fiscal health and attractiveness to international partners.
Original Source: eastleighvoice.co.ke
