IMF Now Slam Kenya With Stiff Conditions Over sh 255B Loan

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Wednesday, April 7, 2021 -International Monetary Fund IMF has set stringent demands to Kenyan Government after public uproar over the sh 255 billion credit facility.

As per their Tuesday April 6^th press statement, Kenyan government will now have to meet certain requirement for the loan facility which will be released in phases. IMF will be depositing the money after proper evaluation of the previous phase.

This twist is happening after a total of 200,000 citizens had by Tuesday April 6 evening penned their petition signatures against the exorbitant borrowing by their government which they accuse of misusing the loans for personal gains.

The loan will now be released in different phases within three years with strict monitoring from the funding organization to make sure it is properly used.

As assign of goodwill to the lender, Kenya government was forced to write to the IMF agreeing to comply with measures meant to reduce theft in public sectors. This is despite previous public assurance from President Uhuru Kenyatta that his government will not condone ‘the corrupt’ in public positions.

“We will continue to support efforts of the Financial Reporting Centre (FRC) towards encouraging and strengthening the use of financial intelligence to trace proceeds of corruption by sharing relevant financial intelligence with law enforcement agencies,” Kenya pledged to the IMF.

Kenyan government also agreed to restrain companies and financial institutions which have been in the dirty lucrative business of money laundering. This is by ensuring all registered firms provide their true owners as per the registrar records.

It has been reported that the IMF is also demanding that proper reforms be reintroduced in selected parastatal government entities to make them profitable and sustainable.

“The fund-supported program will also advance the broader reform and governance agenda, including by addressing weaknesses in some state-owned enterprises (SOEs) and strengthening transparency and accountability through the anti-corruption framework,” read part of the IMF statement.

The evaluation will see entities like The Kenya Railways Corporation, Kenya Power, Kenya Electricity Generating Company, Kenya Ports Authority among others affected.

Kenyans swung out in numbers to petition the international lender against lending any more funds to the Uhuru Kenyatta government arguing that the loans have never been properly utilized.