The government has submitted its economic resuscitation plan to the International Monetary Fund (IMF) for approval following the withdrawal of the contentious Finance Bill, 2024.
President William Ruto's administration has contacted the Bretton Woods Institution seeking fresh funding of Ksh477 billion ($3.6 billion) to cover the deficit created after the controversial piece of legislation was withdrawn.
While appearing before parliamentarians on Monday, National Treasury Principal Secretary Chris Kiptoo revealed Kenya had already begun discussions with the Fund over the potential disbursement of the money.
Chris Kiptoo who spoke during the presentation of the revised budget estimates disclosed the government was similarly in contact with the World Bank for more financing.
“We are beginning to start discussions even on a new program probably with the IMF and others,” PS Kiptoo told the lawmakers. "The state is already in discussions with the World Bank for new development policy financing," he added.
The Prime Cabinet Secretary Musalia Mudavadi who also appeared before the legislators affirmed the government's commitment to acquire more funding from external lenders.
According to Mudavadi, the country's national treasury had a robust discussion with the IMF despite the recent developments witnessed in Kenya.
He stated the discussions with the IMF would take place in August this year and the disbursement of the multi-billion loan was expected by April next year.
"To resolve our debt challenge, we have to have a program with the IMF. It cannot be otherwise," Mudavadi told the Members of Parliament.
While addressing Kenya's relationship with the IMF, Mudavadi dismissed the allegations of potential disassociation from the multilateral lenders.
“If anybody continues to mislead people that you can walk away from the IMF and have your way, it is not true,” Mudavadi clarified.
"You need to have the IMF on your side and the World Bank on your side for you to have a hearing from your creditors," he added.
