Kenyans decry the approval of the IMF loan to Kenya

National Treasury CS UK Yattani 

Over the weekend, Kenyans took to social media to decry the approval of the latest International Monetary Fund (IMF)  loan.

A number of them claim that the loan has worsened the country’s debt status.

This is after, IMF approved emergency funding of 257 billion shillings to Kenya, adding to a 80.6 billion shilling loan earned in May 2020.

The loan program was achieved under the Extended Credit Facility and the Extended Fund Facility which serves to cover countries with short and medium term balance of payment problems arising from structural weaknesses.

This is after the Kenyan government noted that the Covid-19 pandemic greatly affected the economy, with Treasury CS Ukuru Yattani terming Kenya’s relationship with IMF as cordial.

The disruption in global trade and travel, and the containment measures put in place to limit the spread of the virus, meant that economic activity contracted sharply in Kenya.

Forceful early actions to support the economy due to the Covid pandemic, included immediate temporary cuts in personal income taxes and corporate income taxes, a temporary reduction in the rate of the value-added tax from 16 percent to 14 percent, and revisions to the budget to accommodate additional spending on health and social protection.

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