Treasury CS John Mbadi (right) alongside IMF Kenya representative Selim Cakir.IMAGE: National Treasury/X (formerly known as Twitter).
In Summary:
- Treasury CS John Mbadi met with IMF representative Selim Cakir, emphasizing the IMF’s role in Kenya’s economic stability
- The meeting triggered public outcry on social media, with Kenyans expressing concerns about IMF policies and Kenya’s growing debt burden.
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On Wednesday, August 14, Treasury Cabinet Secretary (CS) John Mbadi met with Selim Cakir, the International Monetary Fund (IMF) representative in Kenya.
Following the meeting, the National Treasury highlighted the critical role that institutions like the IMF play in sustaining Kenya’s economic stability and promoting development.
In a post on X, the exchequer stated, “The IMF continues to play a crucial role in supporting Kenya’s economic stability and development.”
The IMF Representative in Kenya, Mr. Selim Cakir, @cakir paid a courtesy call to Treasury CS @CS_HonMbadi, @Kiptoock this morning. The IMF continues to play a crucial role in supporting Kenya's economic stability and development. @IMFNews pic.twitter.com/TbUZRX0xLP
— The National Treasury & Economic Planning (@KeTreasury) August 14, 2024
The IMF is currently running a program with Kenya aimed at reducing the country’s debt vulnerabilities and ensuring that government spending aligns with revenue.
Rufas Kamau, a market analyst with FX Pesa, explained that loans from foreign lenders are essential for Kenya to grow its foreign exchange reserves.
He stated, “It’s in the interest of the Kenyan government to enter bilateral deals with our top trade partners to ease the pressure on foreign currency reserves.”
However, the meeting sparked significant backlash on social media, where Kenyans expressed their dissatisfaction with the IMF’s involvement in the country.
Many argued that the IMF’s policies have led to an unsustainable debt burden for Kenya.
Below are some of the reactions:
- @AmosFidel: “Audit the debt, odious debt is not payable.”
- Nyakundi Omurwa: “Say no to IMF.”
- Jusper Machogu: “The IMF is nothing but an economic hitman. We will never develop with the IMF meddling into our business, especially with them dictating the terms of our business and who to do business with.”
- Peterlee Nyongesa: “We can have an independent economy void of @IMFNews or @WorldBank.”
In response to widespread protests against the Finance Bill 2024, IMF spokesperson Julie Kozack addressed the need for the Kenyan government to engage its citizens in fiscal policy decisions.
Kozack stated that low-income countries like Kenya face a complex balancing act between meeting pressing needs, managing rising debts, and raising domestic revenue.
She further revealed that the IMF is collaborating with Kenyan authorities to ensure their proposed revenue policies meet the intended objectives.