Treasury CS Ukur Yatani has defended Sh255 billion loan approved by the International Monetary Fund (IMF) saying it will aid in the country’s economic recovery.
Speaking to a local publication, Yatani intimated that the borrowed funds would be used for the next phase of the Covid-19 response that has since taken a toll on the country’s economy.
He further revealed that the loan comes in handy as, without the support of IMF, the country would have had to cut spending on investment and social programs.
“Equitable and affordable access to the vaccine is critical and help from the international community are urgently required,” Yatani is quoted by the Star.
He added, “This will help provide employment opportunities, close the digital divide, enable social safety nets to better reach the most vulnerable, and address the climate challenges buffeting the region.”
Yesterday, there was public uproar with Kenyans taking to the IMF Facebook page to express their disappointment regarding the government’s borrowing habits.
This was after the organization announced that it had approved Sh255 billion loan to Kenya to help support the Covid-19 response.
“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.
The majority of Kenyans are disapproving of the Jubilee government’s insatiable appetite for foreign loans hence took upon themselves to rant and express displeasure at the government’s lending habits that have since plunged the country into debts.
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.
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.”
The thread has since gone viral and is trending on Twitter under #stoploaningkenya.