The IMF has reaffirmed its commitment to support Kenya’s economic growth through various funding programs following a new loan request. Key discussions at a parliamentary meeting focused on enhancing governance and transparency in public debt management, and the need for prudent economic policies. Improvement in oversight and legislative scrutiny is crucial for balancing debt acquisition with sound fiscal management.
The International Monetary Fund (IMF), through its African Department Chief Haimanot Teferra, has affirmed its commitment to providing support to Kenya’s medium-term growth through various financial programs, including the Extended Fund Facility and Extended Credit Facility. This announcement follows the receipt of a new loan request from the Kenyan government. In interactions with the Parliamentary Caucus, Teferra emphasized sound economic policies along with loan acquisition to bolster Kenya’s economic stability.
At a recent meeting convened at Parliament Buildings and chaired by Wajir East MP Aden Daud, lawmakers engaged in discussions regarding Kenya’s economic challenges, particularly its credit status. Teferra highlighted the necessity of governance enhancements and more robust oversight of public debt management. Factors such as establishing debt thresholds and legislative amendments are vital for rebuilding credibility with development partners.
Furthermore, Aden Daud pointed out that Kenya’s public debt has surpassed acceptable limits dictated by the Public Finance Management (PFM) framework. He warned that without proper expenditure oversight, rising debt servicing costs could severely hinder fiscal strategy. Daud expressed a commitment to improving parliamentary scrutiny of economic policies and fiscal management to uphold legislative integrity.
The IMF stressed the importance of balancing debt acquisition with prudent economic practices, indicating that Kenya’s capacity to honor its financial obligations is crucial for maintaining attractiveness to potential partners. The delegation also pointed out the importance of transparency reforms as prerequisites for ongoing and future financial assistance from the IMF.
In conclusion, the IMF emphasizes the critical need for Kenya to manage its debt responsibly while implementing sound economic policies. The affirmation of support through various financial programs aims to bolster Kenya’s growth, provided governance and oversight mechanisms are strengthened. Collaboration between legislators and the IMF is essential to ensure the effectiveness of economic measures and fiscal strategies moving forward.
Original Source: eastleighvoice.co.ke
