International Monetary Fund (IMF) Deputy Managing Director Nigel Clarke has issued a statement after his two-day visit to Kenya.
Clarke, who was in Kenya between December 8 and December 10, issued recommendations for Kenya’s economic challenges while expressing his deep appreciation to the Kenyan authorities and Kenyan people for their incredible hospitality during his visit to Kenya as IMF Deputy Managing Director.
“In particular, I would like to thank H.E. President Dr William Ruto, Cabinet Secretary for National Treasury and Economic Planning Mr John Mbadi, Governor of the Central Bank of Kenya Dr Kamau Thugge, and other senior government officials for the productive discussions,” he said.
According to the IMF boss, his visit was a valuable opportunity to listen and learn from a cross-section of Kenyan society, including representatives of the Kenyan Parliament, civil society organizations, the business community, the financial sector, and Kenya’s development partners.
He added that this vibrant and open dialogue allowed him to deepen his understanding of Kenya’s economic challenges, and how the IMF can continue to support policies for the betterment of Kenyan society.
Clarke highlighted that the government’s policy agenda and reform programs, supported by the IMF’s Extended Fund Facility (EFF), Extended Credit Facility (ECF), and the Resilience and Sustainability Facility (RSF) arrangements, have helped improve Kenya’s resilience to economic and climate shocks.
IMF Deputy Managing Director issues recommendations
However, he pointed out that Kenya is still facing challenges, especially in strengthening the fiscal framework and reducing debt vulnerabilities.
“The Kenyan authorities face a difficult balancing act of fulfilling the aspirations of the Kenyan people by delivering on priority social and developmental needs even as debt servicing obligations consume a large share of government’s revenues,” Clarke commented.
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The Deputy Managing Director went ahead to say that the IMF encourages Kenya to remain engaged with all relevant stakeholders and friends on the path forward and effectively communicate to and engage with the people of Kenya on the policy options to strengthen public trust.
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He also encouraged the authorities to continue efforts to create the fiscal space needed to finance priority investment and social spending and make further progress in investing in human capital and greater inclusivity.
“I also emphasized the importance of ensuring that revenues are well spent by strengthening public financial management, governance, transparency, and anti- corruption frameworks. All these efforts will help move the economy forward and enhance its resilience to shocks,” a statement by the IMF Deputy Managing Director adds.
Mission in Kenya to happen early 2025
An International Monetary Fund mission is also expected in Kenya early 2025 to begin an in-depth assessment of how corruption is sapping the nation’s public finances, according to the lender’s deputy managing director.
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Having one of the largest programs in the world with the IMF, Kenya requested the assessment in October.
The “governance diagnostic” mission team will engage a diverse range of stakeholders to establish where there are governance shortcomings and possible improvements.
“We expect that a mission will be fielded early in the new year,” Clarke said at a press briefing in Nairobi on Tuesday.
“It will allow a road map to emerge, a road map of reforms that can be incorporated over time with a view of improving governance outcomes in Kenya.”
This comes after IMF in a statement on October 30 announced that its Executive Board has completed the review of Kenya’s economic programs and in turn approved $606 million in combined disbursements.
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