The IMF has acknowledged a formal financing programme request from Kenya, clarifying that the ninth review under previous programmes will not occur. The East African nation’s economy requires ongoing support as it navigates rising debt-servicing costs and seeks new funding following the withdrawal of a tax hike proposal amid public protests.
The International Monetary Fund (IMF) has acknowledged receiving a formal request from the Kenyan authorities for a new financing programme. In a statement issued on Monday, the IMF indicated its intention to engage with the Kenyan government regarding this request. However, the IMF has clarified that there will be no continuation of the ninth review under the existing extended fund and credit facility programmes.
Although the specifics of the requested programme remain unspecified, Finance Minister John Mbadi previously indicated to Reuters that it would entail a financing programme. The need for sustained financial assistance from the IMF has become paramount for the East African nation, which is grappling with rising debt-servicing costs resultant from extensive borrowing over the previous decade.
Further complicating the situation, the Kenyan government has been actively seeking new financing avenues following last year’s protests that compelled it to withdraw a proposal aimed at increasing revenue through tax increases. The government faces significant economic challenges and requires support to stabilize its financial landscape.
In conclusion, the IMF has received a formal request from Kenya for a new financing programme amidst rising debt levels and increased economic challenges. While details of the new programme are not yet disclosed, the engagement between the IMF and Kenyan authorities signifies crucial support for the country’s financial stability. The government’s previous attempts to raise revenue through tax hikes were thwarted by public protests, further highlighting the urgency for financial assistance.
Original Source: theprint.in
