Popular Economist and political commentator David Ndii today schooled Kenyans on the controversial loan that the International Monetary Fund (IMF) advanced to the government even as a petition launched by Kenyans seeking to have the Sh255 billion loan recalled went viral.
“Dear young #KOT The IMF loan Kenya has taken is called a structural adjustment loan (SAPs). It comes with austerity (tax raises, spending cuts, downsizing) to keep Kenya creditworthy so that we continue borrowing and servicing debt. IMF is not here for fun. Ask older people,” noted Ndii.
To drive his point home, Ndii attached an excerpt which went into further conditions which touched on governance.
“It aims to reduce debt vulnerabilities through a multi-year fiscal consolidation effort centered on raising tax revenues, and tightly controlling spending, safeguarding resources to protect vulnerable groups.
“It will also advance the structural reform and governance agenda, including by addressing weaknesses in some state-owned enterprises and strengthening transparency and accountability through the anticorruption framework,” the excerpt read.
Kenyans took matters into their own hands literally and launched a petition seeking to have IMF recall the loan with the petition having been signed by more than 200000 people by the time of this publication.
Many noted that the money would be looted by corrupt state officials, leaving Kenyans to repay a loan that never helped them.
Many also pointed out that none other than the president recently admitted that Ksh 2 Billion is lost to corruption daily.