Parliamentary Caucus deliberates with IMF on measures to enhance broader economic reforms

𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬, 
𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐌𝐚𝐫𝐜𝐡 𝟏𝟑, 𝟐𝟎𝟐𝟓.

The Parliamentary Caucus on the Parliamentary Network on the World Bank and the International Monetary Fund (IMF) Kenya Chapter, led by the Chairperson Hon. Aden Daud (Wajir East), held a productive consultative meeting today with the IMF Mission team.

The meeting was led by Ms. Haimanot Teferra, Chief of the IMF’s African Department, who expressed appreciation for the opportunity to engage with the caucus. She welcomed the formation of the caucus, highlighting its role in strengthening engagement between Parliament and the IMF. 

Ms. Teferra extensively discussed measures to enhance governance and oversight of Kenya’s public debt, including the design of debt thresholds and necessary amendments to reinforce credibility and confidence among development partners.

Hon. Daud acknowledged that Kenya’s public debt had exceeded the threshold set under the Public Finance Management (PFM) framework and warned that further expenditure without adequate oversight and review could increase debt servicing costs while shrinking fiscal space.

Discussions also focused on the implementation of program targets. The IMF Chief clarified that while the Fund does not negotiate on behalf of member countries, a request had been received for a new program. She noted that the review of past program targets was essential to understanding Kenya’s commitments, the factors causing delays in implementation, and the necessary adjustments to ensure future success. 

The caucus pledged to work with relevant Parliamentary Committees to ensure Legislators are well-informed of decisions that deviate from agreed program targets.

The IMF reaffirmed its commitment to support Kenya through the Extended Fund Facility (EFF), Extended Credit Facility (ECF), and Rapid Credit Facility (RCF) programs. These initiatives aim to address debt vulnerabilities, enhance resilience to economic shocks, improve governance and transparency, and drive broader economic reforms to support Kenya’s medium-term growth prospects. However, it was acknowledged that achieving these goals would require sustained efforts over time.

To strengthen cooperation between Parliament and the IMF, both institutions committed to work closely to ensure the effective implementation of program objectives. 

Future engagements will focus on key areas including climate change, the timely implementation of Kenya’s debt anchor, and adherence to international best practices. Further discussions and engagements will be scheduled to facilitate continued collaboration.