Kenya Dejected Over IMF Demand to Drop Stalled Projects

The Kenyan government has expressed reluctance to drop stalled projects estimated to have already cost the taxpayer Sh390 billion in a new raft of conditions set by the International Monetary Fund (IMF).

National Assembly Speaker Justin Muturi expressed dissatisfaction on the proposal when he hosted the World Bank Country Representative for talks at his office in Parliament Buildings on Friday.

“Muturi expressed concern that the bank’s sister institution — the International Monetary Fund — has recommended that they be abandoned yet public funds have been sunk into them,” the Speaker office said in a dispatch following the meeting.

World Bank Country Director, Keith Hansen who made no direct reference to Muturi’s concerns however said the institution will seek to develop Kenya’s capacity support in favour of proper public investment.

“We’re here to help Kenya Institute reforms and change of paradigm to realize private sector driven growth,” he said.

Kenya has benefitted from IMF support with recent funding having been approved in December 2021 when the IMF Executive Board approved the immediate disbursement of Sh29.2 billion under the Extended Credit Facility, in a move meant to support Kenya’s program to address debt vulnerabilities and aid in the response to the COVID-19 pandemic.

The board agreed on the disbursement of the money on December 17 bringing the total amount disbursed to the country for budget support to Sh100 billion.

“The Executive Board completed the 2021 Article IV Consultation and the Second reviews of the 38-month Extended Arrangement under the Extended Fund Facility (EFF) and 38-month arrangement under Extended Credit Facility (ECF) for Kenya. The board has agreed to the immediate disbursement of USD258.1mn (Sh.29.2Bn) to Kenya,” IMF said in a statement published on December 18.