IMF Kenya Loans: Kenya is broke and seeking for more loans. For the second time in less than six months, the State reached out to the International Monetary Fund (IMF) for budget support. Kenya says that the new loan will go far in helping the country weather the coronavirus economic hardships.

According to a report that appeared in the Business Daily on Tuesday, IMF resident representative Tobias Rasmussen said the government had asked the Brettonwoods institution for another loan following the $739 million (Sh. 79.3) billion received in May.

“Following up on the support provided by the IMF in May under our Rapid Credit Facility (RCF), the Kenyan authorities have expressed interest in a Fund arrangement. IMF staff is in discussions with the authorities toward such an arrangement,” Mr. Rasmussen was quoted by the paper.

The report further said that the type of credit Kenya has sought from the IMF is “a quick-disbursing facility where money flows straight into the budget to top up the public purse and is used at the discretion of the government”.

SportPesa owners in bitter fight over Sh. 29.1 billion

The new loan adds on the trillions that the government has borrowed under president Uhuru Kenyatta. This is despite the continuous poor performance by the economy. Currently, the National Treasury expects growth of less than 2.5 percent compared to 5.4 percent last year.

“Tax collections in the three months to September dropped 14.69 percent to Sh. 317.6 billion, raising fears Kenya’s budget deficit for this financial year could increase due to revenue shortfalls,” the report said. “Treasury chiefs project in a draft Budget Review and Outlook Paper new loans of Sh. 1.87 trillion in the two years to June 2020 or Sh. 2.5 billion daily, pushing Kenya’s debt to Sh. 8.06 trillion.”

This means that President Kenyatta will have borrowed at least Sh. 6.1 trillion to implement his manifesto in 10 years in power having inherited slightly more than Sh. 1.89 trillion in June 2013. IMF Kenya Loans.