The IMF has received a request for a new financing programme from Kenya, indicating no further review under current programmes. The East African nation requires financial assistance due to surging debt-servicing costs and previous failed revenue plans after protests.
The International Monetary Fund (IMF) has acknowledged receipt of a formal request from Kenyan authorities for a new financing programme, as announced on Monday. The IMF has stated that there will be no continuation of the ninth review under its existing extended fund facility and extended credit facility programmes. While specifics of the requested programme remain undisclosed, Kenyan Finance Minister John Mbadi indicated it pertains to financing needs.
Kenya’s economy, one of the leading economies in East Africa, is grappling with significant debt-servicing expenses, largely attributed to increased borrowing over the past decade. The government is actively seeking new financial support to stabilize its economy, especially after last year’s widespread protests thwarted plans for heightened revenue through tax increases.
In summary, the IMF is engaging with Kenyan authorities regarding a formal request for a new financing programme to assist the country’s economy. Amidst rising debt-servicing challenges, Kenya is seeking external support, particularly after unsuccessful attempts to raise revenue through tax reforms following domestic unrest. The situation necessitates close monitoring as the IMF and Kenya navigate this financial arrangement.
Original Source: theprint.in
