IMF Receives Formal Request for New Financing Programme from Kenya
The IMF has received a request for a new financing programme from Kenya, following the abandonment of its ninth review under current programmes. Finance Minister John Mbadi indicated it is related to financing needs due to surging debt costs and past protests that halted tax increase plans.
The International Monetary Fund (IMF) has received a formal request from the Kenyan government for a new financing programme, as announced on Monday. The organization indicated it plans to engage with Kenyan authorities regarding this matter. Notably, the IMF stated that the ninth review under its current extended fund facility and extended credit facility programmes will not proceed.
While the specific nature of the requested programme was not disclosed, Kenya’s Finance Minister John Mbadi disclosed to Reuters last month that it pertains to a financing programme. The East African economy is in critical need of ongoing support from the IMF to stabilize its economy, especially following a significant increase in debt-servicing costs due to extensive borrowing in the last decade.
The Kenyan government has been actively seeking new financing options after violent protests last year compelled it to abandon plans to generate additional revenue through tax increases. This context underscores the urgency for the IMF’s support to ensure fiscal stability.
The IMF’s engagement with Kenya following its formal request for a new financing programme highlights the country’s critical economic condition. With mounting debt-servicing costs and pressures from public dissent, Kenya seeks support to stabilize its economy amidst a challenging fiscal environment.
Original Source: theprint.in
