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How Coronavirus Pandemic has Caused More Kenyan Debts

1) During this coronavirus pandemic the Kenyan government is adding more debt instead of reducing the debt or not add more debts,

instead the debt situation worsens as the Kenyan government counties to incur more debts, more debts increases and reasons that is given for taking the loans is that the money would help in responding to the coronavirus pandemic.

2) Although the lending countries have tried as much as possible to be able to help Kenya in reducing the debts, or ways through which the debts could be cleared faster,

so as to be able to focus on other sections such as economy of the country, the efforts have borne no fruits because Kenya has continues to borrow more money.

The Paris club announced that it had reached an agreement to suspend a debt belonging to Kenya from January 2021 to June 2021,

with a condition that the resources that would have been used in paying the debt be used in the health, economic and social impacts of the coronavirus.

3) Finally, information that Kenya pressured the International Monetary Fund to give out the 3.4 trillion Kenyan shillings parastatal and country loans as the country’s national debt, increasing the debt amount.

The country’s debt moved from 7 trillion Kenyan shillings to 10.4 trillion Kenyan shillings, which is higher compared to the total amount of money set by parliament which the country can apply as a debt which is 9 trillion Kenyan shillings.

Content created and supplied by: Anyiti_jim (via Opera News )

Coronavirus Pandemic International Monetary Fund Kenya Kenyan Paris


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