Kenya will have to implement tough conditions imposed by the International Monetary Fund following the approval of the 255 billion loan. The IMF conditions are not entirely new, which most of the demanded measures are already in place.
In a statement announcing the approval of the 255 billion loan to Kenya which happened on Tuesday the IMF has therefore singled out nine key loss-making parastatals that will undergo a major overhaul to stop bleeding the public purse. This was made out due to the public outcry over the government’s going appetite for new loans.
The public debt load has already exceeded sh 7.2 trillion, which is equivalent to nearly two thirds of the gross domestic products. President Kibaki’s administration weaned Kenya off the reliance on external loans to finance its budget, which is seen to be opposite in Kenyatta’s government where rampant corruption and lack of accountability has made the country sink into a debt abyss.
Due to the statement that was released on a day when an online petition asking the IMF to withhold the latest loan until the cash-strapped government address runaway corruption recorded more done 200,000 signatures, the IMF stated out that concrete measures will include completing a draft blueprint that will identify necessary actions and legal reforms to enhance fair governance; developing an integrated monitoring and reporting system; establishing a performance management monitoring and evaluation framework; and initiating a review of institutional structures.
By; Nelly Itinot