Kenya’s central bank governor says the country wants an IMF-funded program
Kenya’s central bank governor stated Wednesday that the country wants its next IMF program to be funded. This comes ahead of an IMF visit next month to discuss a new program proposal.
Kenya failed to receive the final tranche of its $3.6 billion Extended Fund Facility and Extended Credit Facility, which totaled $800 million, and the IMF and Kenya abandoned the final evaluation of the East African country’s last support program in March.
Following the cancellation of its planned tax increases due to fatal statewide protests, Kenya had struggled to increase revenue collection and control its fiscal deficit, two of the IMF’s primary objectives.
According to financial commentators, Kenya requires a fresh loan from the IMF in order to support the repayment of its external debt.
However, others believed the nation would choose to run a non-funded program the second time around due to its challenges in fulfilling IMF targets under the previous program.
A day after the central bank lowered its benchmark lending rate (KECBIR=ECI), Governor Kamau Thugge told a press conference, “We have told the IMF board that we would prefer to have a funded program.” The central bank creates a new tab for the seventh consecutive meeting.
