MinBane

I write what I like.

Opinion: Kenyatta is following IMF Austerity orders!

This week the Kenyan President Uhuru Kenyatta have stopped his signature development projects just a few months into the second term as a President. This must be connected with the agreement with the International Monetary Funds (IMF) done earlier in the year. Because that would make sense. The Jubilee is clearly not delivering, while the prices are surging and also the growing debt of the Republic. Kenyatta is surely following the protocol of the IMF, but he is putting like it is his idea. But when you looking into the documentation from the IMF, you can see the connection between the two. First is the review of the IMF and also Kenyatta statement from this week.

IMF review of Kenya:

The mission welcomed the authorities’ plans to accelerate reforms aimed at (i) increasing the efficiency and transparency of public spending, particularly on development spending; and (ii) safeguarding financial stability by strengthening capital and liquidity positions of banks and microfinance institutions, promptly addressing the capital and liquidity deficiencies in individual banks, and implementing new International Financial Reporting Standards (IFRS)” (…) “The authorities requested a six-month extension of the SBA that expires on March 13, 2018 to allow more time to complete the outstanding reviews of the IMF-supported program. In support of this request, the authorities have committed to policies to achieve the program objectives, including reducing the fiscal deficit and substantially modifying interest controls. Discussions on the details of these policies will continue in the coming weeks” (IMF – ‘IMF Staff Concludes Visit to Kenya’ 07.03.2018).

Kenyatta Statement:

President Kenyatta said the directive is aimed at stopping wastage of resources and the habit of government agencies abandoning incomplete projects before jumping onto others. “There will be no new projects that will be embarked on until you complete those that are ongoing,” said the President who spoke at the Kenyatta International Convention Centre where he addressed a meeting bringing together all government accounting officers including Principal Secretaries, Parastatal Heads, Vice Chancellors of Public Universities and Chairmen of State Corporations. The President said projects that might be exempt from the freeze will be only those that are directly aligned to the Big Four Agenda but even then there must be a written authorisation from the National Treasury. “Even if new projects are aligned to the Big Four they cannot be started without express authority from CS or PS of the National Treasury,” said President Kenyatta” (PSCU – ‘President Kenyatta Freezes All New Government Projects Until Current Ones Are Completed’ 19.07.2018).

Because when you connected from the review and Kenyatta you get this:

First: “The mission welcomed the authorities’ plans to accelerate reforms aimed at (i) increasing the efficiency and transparency of public spending, particularly on development spending” (IMF, 2018) and than the President saying: “There will be no new projects that will be embarked on until you complete those that are ongoing” (…) “Even if new projects are aligned to the Big Four they cannot be started without express authority from CS or PS of the National Treasury” (Kenyatta, 2018). Because they are stating the same sort of things. Even stating that the authorities are ordering to stop new projects and stop spending, just like the IMF. This is proof of the connection and the reason for the push to stop the purse-string and austerity measures in the line of the IMF. This must be because of the growing debt and also the extensive spending that has been done over the first years of the Jubilee government.

To see this, is to see how the IMF is playing the cards and controlling the debt-ridden republic, which has the graft-drifting and embezzlement from high-ranking officials. That is why the growth of corruption in Kenya has been up 240% by the Jubilee government alone. This should be a warning because of the massive loans and corrupt behavior. Even with the stop of the development projects. Also, abolishing for now the Big Four Agenda, the baby of this administration.

Therefore, the Kenyan is pocketed and controlled, that is why we know that the Republic is indebted and have lost a bit control of their tab. When they have to stop spending and issuing this sort of order per request of the IMF. That is not a sign of strength, but out of weakness. Peace.

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