So, what is the state of the government’s finances? First, some news. I gather from top National Treasury officials that Kenya has decided to delay plans to access the $1.5 billion it has been negotiating with Emirati sovereign wealth fund.
National Treasury officials will not openly admit it but it seems the fear is that a deal with the Emirati’s right now may complicate existing arrangements with the International Monetary Fund.
From what I gather in conversations with Treasury mandarins, the priority and indeed hope of the government right now is that the IMF board meetings on Kenya scheduled on October 30, will approve and precipitate immediate release of some Sh113 billion in commitment disbursements by the Bretton Woods lender.
The government urgently needs the cash to ease the fiscal pressures it endured especially in the months of July and August and as it approaches close of the first quarter of the financial year.
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