RUTO runs to IMF again for a soft loan after Gen Zs forced him to withdraw the contentious Finance Bill 2024 – See the billions he is waiting for?

Friday, August 9, 2024 – President William Ruto has secured another soft loan from the IMF amid economic turmoil.

According to CBK Governor Kamau Thugge, Kenya is poised to receive Ksh181.3 billion in disbursements from the IMF this financial year.

This comes as the country grapples with the economic repercussions of recent deadly protests and a rejected Finance Bill.

The Governor revealed during a press briefing on Tuesday that Kenya expects $1.4 billion (about Ksh181.3 billion) from the IMF, along with an additional $600 million (about Ksh77.7 billion) from a recent review. 

Treasury Principal Secretary Chris Kiptoo had earlier highlighted the government’s plan to seek further financing from the IMF and other sources.

"We are beginning to start discussions even on a new program probably with the IMF and others," Kiptoo told lawmakers, emphasising the state’s ongoing talks with the World Bank for new development policy financing.

Thugge revealed that the government is seeking upwards of Ksh770 billion in the current financial year, with a large chunk, Ksh430 billion, being borrowed from the domestic market.

The economic strain has intensified after the Finance Bill 2024 was withdrawn following public outcry. President William Ruto conceded that the country must borrow more to maintain government operations. 

The IMF’s conditions for its loans include raising taxes, reducing subsidies, and curbing government waste, aiming to boost revenue while controlling spending. These measures began last year, with Ruto prioritising the IMF programme.

IMF’s involvement has been critical in maintaining Kenya’s economic stability. 

The loan conditions, although stringent, are seen as necessary to restore fiscal discipline.

The Kenyan DAILY POST