Kenya, May 12 -- Kenya has said it will stop using money from the International Monetary Fund (IMF) in its national budget until 2029. Instead, the country will take long-term loans from the World Bank, which come with fewer conditions.
This choice avoids tough rules set by the IMF, such as raising taxes, freezing public jobs, and having a corruption audit of the Kenyan government.
Finance Cabinet Secretary John Mbadi explained that this move would help the economy and reduce pressure on people who were already facing high living costs.
The World Bank loans, which have fewer strict rules, are expected to help with building infrastructure and social programs while allowing Kenya to have more control over its finances.
The IMF's requirement for a corruption audit worried many Kenyan officials, who felt it was an unnecessary interference in how the country is run.
Some critics warn that depending too much on World Bank loans could lead to more debt for Kenya, with repayment periods lasting many years.
The government has not yet dealt with corruption issues on its own, raising questions about transparency.
Analysts believe this change in Kenya may influence other African countries to think again about their use of IMF funding.
Published by HT Digital Content Services with permission from Bana Kenya.