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The International Monetary Fund (IMF) has completed the review of the performance of its Sh150 billion forex insurance program with Kenya as the Treasury looks at the key demand of the Multilateral lender to remove interest rate caps. In an unusual move, the IMF said it had handed the review report to the Kenyan government before considering its publication.
The government should fight MPs, some of whom have vowed not to support removal of restrictions. "The authorities need more time to review the release of the staff report and press release," the IMF said in a statement.
The IMF review came as the country progressed to meet some of the targets set, but may not reach other goals such as those related to the review of the rate controls. interest and the establishment of a new method of interest rate management by the central bank. 19659007] Outstanding issues following IMF extension from the programming period to September this year included tariff ceilings, the establishment of a corridor of interest – dependent on the first – as well as the 7.2% target During the year ending in June 2017, Kenya's budget deficit was set at 9.1%, exceeding the target the IMF by more than two percentage points.
Treasury Secretary Henry Rotich said during the presentation of the Budget Statement last month that the deficit was about to reach the target of 7.2%, although the final figure does not will be publicly known after a review of the 2017/18 fiscal year.
The IMF had also expressed fear that the public debt would rise rapidly, projecting that it could reach 60% by the end of the calendar year. However, the multilateral lender noted that the debt remained below 74%.
"On June 13, 2018, the Board of the International Monetary Fund completed the review of the consultation under Article IV of 2018 and the establishment of the results Criteria for the second review as part of the confirmation agreement with Kenya
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