Written By Lisa Murimi
The United States Ambassador to Kenya, Meg Whitman, disclosed on Tuesday that the International Monetary Fund (IMF) canceled a Ksh 131 billion loan disbursement to Kenya after President William Ruto withdrew the Finance Bill.Â
The disbursement, initially scheduled for approval on June 12, was halted because the government went against the IMF’s agreement by retracting the legislation.
During an interview on Citizen TV, Whitman highlighted the importance of the IMF loan in addressing Kenya’s mounting debt challenges.
She noted that despite the cancellation, there remains a possibility for Kenya to access the funds during an upcoming IMF meeting set for the end of August.
“The IMF was going to approve a disbursement around June 12, but when the Finance Bill got pulled down, they could no longer do it,” Whitman explained.
She emphasized the critical need for the funds, stating, “Kenya faces a very difficult situation, and this disbursement is important.”
Whitman also urged President Ruto’s administration to implement measures to address the country’s fiscal challenges, pointing out that a significant portion of Kenya’s budget is consumed by interest and principal payments on its debt.
The Ksh 131 billion loan would have been the largest disbursement by the IMF to Kenya since 2021, following the completion of the program’s seventh review.
The funds were intended to help narrow Kenya’s budget deficit, which currently stands at Ksh 500 billion.
