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#1
IMF forces Kenya to add Sh. 3.4 trillion loans on Sh. 7 trillion national debt
Kenya's debt to hit Sh. 10 trillion after IMF's inclusion of Sh. 3.4 trillion local debts
by Bizna Reporter
11th January 2021
Reading Time: 2min read
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Kenya IMF Debt Conditions: The debt problem is escalating from bad to worse. Kenya is currently running on loans. Now, without any funding option, Kenya has bowed to International Monetary Fund (IMF) pressure to include Sh. 3.4 trillion parastatal and county loans as part of the country’s national debt.
According to a report that appeared in a local daily, The National Treasury has announced that this inclusion will be done in phases and will start with foreign currency debts by parastatals. This will be followed by loans from private public partnerships (PPPs), pension and county governments.
The report says that this will be a departure from the current state of loans where the Jubilee government only recognizes guaranteed debts. “IMF wants it to include all loans of State linked firms, a move that will push the country’s Sh. 7 trillion debt up by Sh. 3.4 trillion and crash through the Sh. 9 trillion debt limit,” the report said.

This comes even as the National Treasury prepares to lobby parliament to push the debt ceiling to Sh. 12 trillion in order to allow for more government borrowing.
“The authorities noted the importance of expanding debt coverage to include counties, non-guaranteed debt contracted by the extra budgetary units, and State owned Enterprises (SOEs). They planned to take a gradual approach to monitoring contingent liabilities, for example, to start to monitor external borrowing by large SOEs,” the IMF said in a report titled Kenya’s Selected Specific Fiscal Risks.


According to IMF, the government has guaranteed Sh. 139 billion. This includes some Sh. 75 billion to the national carrier, Kenya Airways.
“Public companies, most of which are loss making have a liability of Sh. 1.494 trillion, PPP’s (Sh. 679 billion), Kenya Depositors Insurance Corporation (Sh. 261 billion), legal claims (Sh. 23 billion) and pensions (Sh. 819 billion),” the local report said. Kenya IMF Debt Conditions.
 

Ingushetia

Senior Villager
#6
I think this is a good reality check. What were the parastatal debts borrowed for, yet most of the parastatals post losses year after year? Think, for instance, about Portland Cement going under in the midst of a construction boom. The fact remains that the government has over committed itself on debt, we have already exceeded our own debt limits. Parliament set it at 9 Trillion, we are at 10 Trillion already. Last time I heard on a TV interview the president comparing our debt levels to Japan's. But Japan is an industrial giant - they have production going on and opportunities for taxation, while our industries are closing down - we are taxing poor people's bone marrow. Let's put the facts on the table and start dealing with the elephant in the room.
 
#17
I think this is a good reality check. What were the parastatal debts borrowed for, yet most of the parastatals post losses year after year? Think, for instance, about Portland Cement going under in the midst of a construction boom. The fact remains that the government has over committed itself on debt, we have already exceeded our own debt limits. Parliament set it at 9 Trillion, we are at 10 Trillion already. Last time I heard on a TV interview the president comparing our debt levels to Japan's. But Japan is an industrial giant - they have production going on and opportunities for taxation, while our industries are closing down - we are taxing poor people's bone marrow. Let's put the facts on the table and start dealing with the elephant in the room.
Nmeona kanjo ikikimbizana na wasee wanauza bajia:D:D:D
 
#18
As soon as Uhuru confesses to be in charge!! Seems the worst is yet to happen...
Mlevi kuimba hivyo is a clear indication that the situation is out of his hands.

Hadi Moi when begging IMF for money went around the country screaming that anateswa na wakoloni. Never mind the fact that he had to go there because the country was mismanaged under him.

Our parents generation saw SAPs. Their kids and grandkids will see it too in their lifetimes.
 
#19
I think this is a good reality check. What were the parastatal debts borrowed for, yet most of the parastatals post losses year after year?
More than half of those are supposed to be dissolved or merged with the parent ministry. But being an incompetent populist, Uhuru has only been creating more and more to dump political allies in.

It becomes even worse when there is a National Assembly that has completely given up it's oversight role and only follows the drunkards idiotic demands to raise the debt ceiling, despite knowing the trouble it will lead to.


Let's put the facts on the table and start dealing with the elephant in the room.
Impeachment of Uhuru. Too much of a hot cake in a compromised parliament
 

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