The Secretary of the Treasury Cabinet held a bilateral meeting on Wednesday (April 7) with the Director of the Africa Department of the International Monetary Fund (IMF), Adebe Selassie, to discuss key issues concerning the country’s economy.
During the meeting, CS Yatani highlighted the IMF’s support to help Kenya mitigate the effects of the Covid-19 pandemic and address structural reforms by noting, including a request to suspend debt repayment for protect the economy from current debt vulnerabilities.
Earlier in the year, Kenya secured a six-month debt suspension agreement with the Paris Club of international creditors as part of the Debt Service Suspension Initiative.
Treasury CS Ukur Yatani addresses media on November 25, 2020 in Nairobi
Yatani also congratulated the IMF on the recent approval of the Ksh 255 billion loan by the IMF board.
“We are pleased to note that the Board of Directors has approved Kenya’s request for funding, which will not only strengthen our response to the Covid-19 pandemic, but will also help us reduce our debt vulnerability through consolidation. tax revenue, as well as addressing structural and governance weaknesses “. he stated.
The bilateral meeting also focused on three key areas: Kenya’s economic performance during the pandemic, preparations for the World Bank’s Third Development Policy Operation for Kenya, and pushing for an expansion of the suspension of debt service (DSSI).
Yatani noted that the main sectors affected by the pandemic, such as transport, education, trade, tourism and manufacturing, still recorded an overall growth of 0.6 percent thanks to a strong performance of the agricultural sector. .
He further told the IMF Africa Director that the country’s economy is expected to grow by 7% in 2021 due to the resumption of international trade, strategic investments in the Big Four Agenda, stable inflation as well as the system. credit guarantee for small and medium-sized businesses. medium-sized enterprises (SMEs).
The Treasury SC also highlighted four major sectors that should be reformed to achieve inclusive growth. These sectors include the electricity sector, human capital, natural capital and tax reforms.
The news comes as the majority of TBEN have expressed concerns over the growing debt crisis alluding to the recent approval of the IMF loan of Ksh 255 billion.
An unofficial petition urging the international body to reverse approval of the loan saw more than 250,000 TBEN sign the petition.
The IMF headquarters building in Washington, United States