Abraham Rugo:Kenya should stop relying on IMF

By Robert Mutasi 

Dr. Abraham Rugo, Country Manager of the International Budget Partnership, has called on the Kenyan government to cease its reliance on the International Monetary Fund's (IMF) policies.

 Instead, he suggests that the government should independently address its monetary policy issues.

In a recent interview with NTV, Dr. Rugo emphasized the need for Kenya to adopt a new approach to achieve better results. 

He believes that this shift will empower the country to devise more effective solutions to economic problems without the constraints imposed by the IMF.

Dr. Rugo expressed his concern about the influence of the IMF, stating, "I become apprehensive when the IMF steps in and we alter our course. We are a sovereign nation and I expect more."

He also noted that Kenyans are ready to contribute their thoughts and opinions on these matters, as they are deeply concerned about the country's economic situation.

 "Kenyans are even prepared to share their views on some of these agreements; this isn't our first time engaging in such dialogues," he added.

Dr. Rugo encouraged the government to involve Kenyans if it decides to move away from IMF policies.

On May 23, 2023, the IMF reached a Staff Level Agreement with Kenya on the Fifth Reviews of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) Arrangements, and the Resilience and Sustainability Facility (RSF). 

The agreement included access to approximately $2.43 billion at the current exchange rate.

The IMF team, led by Haimanot Teferra, also reviewed Kenya's request for access under the IMF's Resilience and Sustainability Facility (RSF). 

The IMF team and Kenyan authorities agreed on several points, including the fifth review of Kenya's economic program under the EFF and ECF arrangements, an increase in access under the EFF/ECF totaling $544.3 million due to challenging global financing conditions, and an extension of the EFF/ECF arrangements by 10 months to April 2025 to allow sufficient time to meet the program objectives.

They also agreed on a new 20-month RSF arrangement that will run concurrently with the EFF/ECF arrangements until April 2025.