By Winfridah Muthee
Kenyans have expressed dissatisfaction saying that the government has an insatiable appetite for foreign loans after the International Monetary Fund (IMF) a few days ago announced that it had approved Sh255 billion loan to Kenya to help support Covid-19 response.
The Washington-based lender’s executive board had approved the 38-month program under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).
“The three-year financing package will support the next phase of the authorities’ COVID-19 response and their plan to reduce debt vulnerabilities while safeguarding resources to protect vulnerable groups,” IMF offered.
Angry Kenyans who are yet to be cushioned by government against economy effects of Covid-19 have disapproved of the move.
Central Bank of Kenya (CBK) governor Patrick Njoroge on Tuesday said that Kenya was hopeful the loan facilities would be approved by Friday and disbursed early next week.
“The bottom line is that the program will support our COVID-19 response and budget support. It anchors fiscal consolidation through revenue-driven policies which minimize debt vulnerabilities. This is the key element of the program. Njoroge said.
Irritated Kenyans have now taken to IMF Facebook page to express their displeasure of the Jubilee government for taking pleasure in lending money that they don’t intend to use to the intended recipient but instead use it for their own benefits leaving the country in a huge debt.
Kenyans are afraid and claim that the money may be another scandal in waiting and are asking IMF to stop issuing the loans as the money will be embezzled.
As of June 2020 Kenya’s public debt was 7 trillion