The IMF urges Kenya to balance loan acquisition with sound economic policies to support growth. IMF Chief Haimanot Teferra confirms the receipt of a new loan request and emphasizes the importance of governance in public debt management. Kenyan MP Aden Daud warns about exceeding the public debt threshold and pledges to improve legislative oversight.
The International Monetary Fund (IMF) has called upon Kenya to ensure a balance between loan acquisition and the implementation of sound economic policies. During a meeting, IMF African Department Chief Haimanot Teferra confirmed that the Kenyan government has submitted a new loan request. The IMF expressed its commitment to utilize several funding programs, including the Extended Fund Facility, Extended Credit Facility, and Rapid Credit Facility, to aid Kenya’s medium-term growth prospects.
Teferra emphasized the necessity for Kenya to enhance governance and oversight regarding public debt management. She highlighted essential factors, such as establishing debt thresholds and making required amendments to build credibility and confidence among development partners. Understanding previous program targets is crucial to adjusting future commitments and ensuring successful implementation.
Aden Daud, the chairperson of the Parliamentary Caucus, pointed out that Kenya’s public debt has surpassed the limits outlined in the Public Finance Management (PFM) framework. He warned that managing further expenditure without proper oversight could result in increased debt servicing costs and reduced fiscal space. Daud assured collaboration with parliamentary committees to bolster legislative oversight and address deviations from agreed objectives effectively.
The IMF delegation underscored that Kenya’s ability to meet its financial obligations is vital for attracting development partners. They reiterated that effective governance and transparency reforms are essential for continued financial support under current and future programs.
In conclusion, the IMF’s communication highlights the imperative for Kenya to strategically balance loan procurement with robust economic governance. Enhanced oversight on public debt, adherence to financial thresholds, and an unwavering commitment to transparency are essential for securing financial assistance and ensuring sustainable economic growth. The collaboration between Kenyan lawmakers and the IMF underscores the shared objective of fostering a stable financial environment for the nation.
Original Source: eastleighvoice.co.ke
