Treasury, CBK kept suspension of Sh152bn facility secret

[li]IMF resident representative says access to credit facility has not been available to govt since June 2017.[/li][li]Kenya had received approval to access the facility in March 2016 as a safeguard in case of shocks in the economy.[/li][li]CBK has maintained it its regular briefings on the monetary policy—the last one coming last month— that the facility remains available to Kenya.[/li][li]Kenya’s access to a $1.5 billion (Sh152 billion) precautionary facility at the International Monetary Fund (IMF) was suspended seven months ago due to non-compliance with fiscal deficit targets, the fund has revealed.[/li]The IMF resident representative in Kenya, Jan Mikkelsen, told agencies on Tuesday that access to the facility has not been available to the government since mid-June, a fact both Treasury and the Central Bank Kenya (CBK) have kept hidden from the public.

Kenya had received approval to access the facility in March 2016 as a safeguard in case of shocks to the economy, especially the currency whose stability is majorly pegged on availability of a healthy flow of foreign exchange.

Since June 2017… i might not be very conversant with economics , lakini hapa nikama walikuwa wanazuia Angoo Luto from doing what he does best i mean, hiyo ndio period campaigning was at full throttle, ama?

Hehehe…hapo walitusaidia…but the government now need that loan to pay for another loan…otherwise our credit rating will take a hit and there will be repercussions.

Prepare for proper shafting

Are those times you often refer to still ahead or we are deep in them now?

Deep very deep

This debt trap that they have put us in is very worrisome.

Non disclosure was bad. But credit to the opus dei for managing to keep the Kenya shilling as one of the most stable currencies despite having no FX credit facility.



The SCFs still remains loan facilities that check on the balance of payments…(glad it’s was not used), Where credit is due to the CBK for maintaining a good inflation rate, despite the growling election year that was 2017…check the statistics we have done well in our peers level. The deficits are in tune to the huge infrastructural targets as a country have set as we reach the vision 2030.
Of course the curve on economic growth will not be a smooth straight line, bumps and jumps will appear but as a country the growth continues.

I sometimes feel like we are moving too fast on the debt train…we should take a break from time to time to see how we are doing and make the necessary adjustments.

Nonsense. Ever since I was a wee lad nimeskia tu : tighten your belts the ride is about to get rough… things are going from bad to worse… the economy is in a freefall…

And during Moi’s time the fav word of the day was ‘inflation’.

If you watched KTN Prime time news in the 90s siku za akina Christine Nguku hearing them speak, one could just as well pack their bags and prepare for death because all was lost.

Even after Kibaki took over it was scandal after scandal that will finish us or famine and drought etc.

Reality is today you can afford a car in your twenties! You can buy clothes from a shop not mitumba. You rarely visit a shop mostly supermarkets. Now people don’t even go to filthy markets, they buy greens at that same supermarket. You can pay with mpesa. You have a phone. You even have a laptop. You have internet. You have a color TV, a good one, a HD one. Na ukitaka you can fly within the borders or take a fancy train. Na bado Kenya inaangamia tu…

Economics is b.s.

Corruption is now devolved

This guy is very capable.
That begs the question - do we really need the facility kama tume survive for almost an year? ama its for the “Duo” to “Eat”

An economist will tell you that for Kenya to grow you need massive infrastructure development and in the same breathe tell you not to build an sgr or a Thika road.

The’ll say: You need money now but don’t borrow. Borrow to spend but why have you spent it? Oil is good, oil is bad there’s no money in oil. Invest in housing it’s a great opportunity, no wait, the bubble is coming! Don’t invest in tried and tested agriculture or manufacturing invest in bonds or wallstreet.

Economists rarely know what they are saying and they are always wrong! But they do like to say, “We predicted that!”

And proof is that the so called smartest brains on earth couldn’t see the recent world economic crash.

Hii inasaidia aje on CBK “non-disclosure”!!

@Grundy, there’s an article in the Standard on this topic indicating that Kenya could not access the stand-by facility until a review was completed.
IMF now says Kenya can access Sh150b subject to “policy understandings” - The Standard

So while we need to monitor our continue borrowing and utilisation of funds, the IMF has not suddenly decided that Kenya is uncreditworthy.

[QUOTE="pipinono, post:

Nilikuwa najibu huyo mtu amesema major shafting is coming our way. As far as I can tell it always has lakini nchi haiishi.

You are preaching to the choir I guess.
[I]The IMF had pegged a condition for access to the facility - that Kenya would reduce its fiscal deficit to less than four per cent of GDP by the fiscal year ending June 2019, but the budget financing gap has instead remained stubbornly high at 8.9 per cent.

The failure to narrow the deficit is partly due to a high recurrent expenditure bill and heavy spending on projects last year as the government sought to deliver on promises to the electorate ahead of the General Elections.
Treasury, CBK kept suspension of Sh152bn facility secret - Business Daily

I always thought you were a smart guy but I am really starting to doubt it.
Simply because guys can afford to buy cars on loans in their mid twenties cannot be a basis for you dismissing economics…Did you see what happened to Greece, Venezuela etc?