Yesterday, the International Monetary Fund (IMF) announced that it had approved Sh255 billion loan to Kenya to help support Covid-19 response,
In a statement, the Washington-based lender said its 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 said.
Speaking on Tuesday, Central Bank of Kenya (CBK) governor Patrick Njoroge said Kenya was hopeful the loan facilities would be approved by Friday and disbursed early next week.
“We expect this will be approved on Friday and the consequential disbursement will follow early next week,” Njoroge said.
He added, “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.”
Kenyans are however unimpressed with the move and have taken it upon themselves to rant and express displeasure at the government’s lending habits that have since thrown the country into debts.
For instance, the majority of Kenyans are disapproving of the Jubilee government’s insatiable appetite for foreign loans.
According to the 2021 Budget Policy Statement, Kenya’s public debt as of June 2020 stood at Sh7. 06 trillion, equivalent to 65 percent of GDP.
They have since taken to the IMF Facebook page expressing their displeasure and pleading with the organization to stop issuing loans to Kenyans claiming that the funds will be misappropriated.
One Robert Mwangi questioned, “What measures have you in place to ensure that the money is strictly used for the intended recipients and purpose. Remember that we poor Kenyans will bear the blunt when the borrowed funds are misappropriated. Kindly IMF, issue very strict guidelines and conditions before releasing the funds?”
Another, Vitalis Kibet said, “That money will end in few Kenyan pockets IMF you are just supporting corruption in Kenya, Kenyans will forever remain poor while few will be overnight billionaires courtesy of IMF.”
Here are more screenshots of the same: