Friday, October 4, 2024 – President William Ruto’s government is in dire need of money after Kenya’s financial crisis took a sharp turn.
This is after Western government
urged Ruto to consider taking a full audit of corruption and governance before
the new funding is approved by the International Monetary Fund (IMF).
The Ksh77.5 billion loan from
IMF that Ruto has been hoping for may now be in jeopardy.
The call for this audit is seen
as a direct blow to the government's efforts to secure external funding without
addressing lingering transparency issues.
According to sources, IMF
shareholders, including influential Western nations, are pushing for an unprecedented
review of Kenya’s governance.
The IMF has been hesitant to
release funds following Kenya’s withdrawal of Ksh346 billion in planned tax
hikes, which were shelved after widespread protests earlier this year.
The sources revealed that until
Ruto’s government offers a viable solution to its fiscal crisis, future
disbursements may remain frozen.
Kenya’s standoff with the IMF
has created a ripple effect with talks now circulating about alternative
funding options.
The government has reportedly
approached the United Arab Emirates for a potential Ksh193 billion loan,
seeking to bridge its budget deficit with high-interest loans from Abu Dhabi.
But this option could spell
further trouble for Kenya’s fiscal sustainability.
Kenya’s economy, already
under strain from shrinking revenues and rising public debt, is now walking
tightrope.
According to experts, the
country is at a critical juncture where external pressure from the IMF and
domestic challenges could spark an economic crisis.
Ruto’s administration is being
forced to reconsider its strategies, with fresh discussions on revenue-raising
measures becoming inevitable.
The Kenyan DAILY POST
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1 Comments
TOO LITTLE TOO LATE, THE WEST AND FAR EAST HAVE BEEN GIVING LOANS RECKLESSLY TO AFRICAN COUNTRES JUST FOR THE LEADERS TO ENRICH THEMSELVES LEAVING CITIZENS MOST OF WHOM ARE LIVING BELOW THE POVERTY LINE GETTING EVEN MORE POORER AS THEY ARE FORCED TO REPAY THE HEFTY LOANS WHICH HAS NOT BENEFITTED THEM AS THE PROJECTS ARE HIGHLY OVER PRICED . KENYA SHOULD NOT BE GIVEN ANY MORE LOANS AS IT NOW APPEARS THE PRESIDENT IS FUNDING THE BUDGET USING LOANS
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