IMF Warns Kenyan Government Against Using Loan Funds to Finance Elections

DailyDigitalJournal

The International Monetary Fund has cited increased political activities in the country as possible threat to the recently awarded loan to Kenya. The International lending body has warned Kenya against diverting loan funds on election activities.

“Public debt has been increasing at a relatively fast pace since 2013, with slippages in the run-up to the 2017 elections pushing debt up to a projected 60.7 per cent of GDP by June 2018,” said IMF in a staff report. The IMF doesn't a repeat of the above scenario

The country may possibly head into a constitution referendum before the year ends. Parliamentary Committees estimate the entire cost of conducting the election to be 20B. The country is also heading into general elections next year.

The Treasury will receive 79B from the international body next week as part of the 262B loan awarded to Kenya by the International Monetary Fund Board. The remaining amount will be sent in bids for six coming months.

There is a rising public opinion over the rate at which the government is borrowing. In 2018, 60.8 of the GDP comprised of debt. Citizens have called for strict accountability for the borrowed money.

Yesterday, Treasury said that it had rolled out a 38 weeks economic recovery plan following the damage caused by COVID-19 containment measures.

As a result of budget deficits,the government increased taxes on petroleum products last month. Prices are expected to rise even higher next month.

The goverment should moderate it's borrowing activities to avoid hurting or placing a huge burden on the future generation.

DailyDigitalJournal kenya_public@operanewshub.com