This archive report was first published on 9 May 2020.
On May 9, 2020, the International Monetary Fund (IMF) approved a Sh79 billion credit line for Kenya to help the country navigate the economic challenges posed by the COVID-19 pandemic.
The pandemic has had a devastating impact on economies worldwide, and any cash injection into the Kenyan economy is welcome news. However, the loan comes with a contractual obligation to repay the principal sum, which adds to the country's already burgeoning debt pile.
Kenya's debt burden stands at over Sh6 trillion, more than twice the annual national budget. The challenge is that any revenues collected are first used to retire loans, leaving little room for recurrent and capital expenditure.
With the IMF loan, there are concerns about the propensity to steal and misuse public cash. Billions of shillings are lost through corruption and wastage each year, and the public is outraged over the spending of Sh1.3 billion obtained from the World Bank for the COVID-19 campaign.
As the country struggles to stay afloat, prudence and frugality are paramount. The IMF loan must be spent on what it was intended for, and the government must ensure that public cash is put to proper use.
