RUTO’s government reveals next move after strained relations with IMF as it seeks alternative loans

Tuesday, October 1, 2024 – President William Ruto is not about to let go of the International Monetary Fund (IMF) despite Kenya's strained financial relationship with the international lender.

The Treasury has signaled that negotiations for a fresh deal are still on the table, with a decision on the next program expected when the current arrangement expires in April 2025.

Amid mounting pressure, Treasury Principal Secretary Chris Kiptoo revealed that Kenya would determine its path with the IMF after the expiry of the current $3.6 billion loan.

In an interview with Bloomberg, Kiptoo stated Kenya had “not reached such a decision yet” and will make a pronouncement “on the nature of the next programme with IMF after the end of the current programme in April.”

Kenya's continued engagement with the IMF matters because it directly impacts the country's economic stability and public welfare. 

The IMF's stringent loan conditions, which prioritise fiscal discipline and debt repayment, often clash with the government's ability to address urgent social and economic needs, such as job creation and poverty alleviation.

With a growing budget deficit, rising public protests, and increasing foreign debt, the government's negotiations with the IMF will determine not only its ability to secure crucial funding but also its capacity to implement policies that benefit everyday Kenyans.

The loan, signed in 2021, has come with a heavy burden of strict conditions that have sparked public uproar.

Critics argue that the IMF prioritises Kenya's debt obligations over the well-being of its citizens, despite its claims to support economic and social reforms.

The Kenyan DAILY POST