NEW DEBT FOR KENYA

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As Coronavirus cases spikes in the country, the Government of Kenya is seeking another loan in less than 6 months from International Monetary Fund (IMF) to combat the pandemic.

In May the government had received a loan of KSh 79.3 Billion for the same.

Tobias Rasmussen the IMF resident representative has said that Kenya is seeking another loan from the Brettonwoods institution.

It seems the country is in dire need of cash. The pandemic has contributed in low revenue collection.

Loan servicing has also affected the country greatly. With another multibillion loan in the offing, this could worsen the situation.

Just two months in the current financial year, revenue collection is already Ksh 40 billion short.

Kenya is seeking a quick disbursing facility loan. If given the loan, it will be disbursed directly to the public purse.

This means that the government will use the monies received at their own discretion.

This is a huge shift from the previous administration where IMF and World Bank gave Kenya aid in form of project support.