NAIROBI (Reuters) - COVID-19 has exposed Kenya’s debt vulnerabilities though official measures including monetary policy easing have helped shield the economy from the impact of the pandemic, the International Monetary Fund (IMF) said late on Friday.
The Nairobi skyline is seen in the background as a zebra walks through the Nairobi National Park, near Nairobi, Kenya, December 3, 2018.
“Kenya’s development goals have nonetheless suffered a significant setback... the (COVID-19) shock has also crystallized debt-related vulnerabilities and exposed weaknesses in some state-owned enterprises,” it added.
Earlier this month, the IMF said it was holding talks with Kenya on a new lending facility as the country faces ballooning budget deficits worsened by the coronavirus crisis.
The government has stopped seeking expensive commercial debt to cut back on growing repayments at a time when revenue collection has been squeezed by the pandemic.
Amir Cohen The, “, Ukur Yatani
International Monetary Fund, REUTERS, Amir Cohen The Fund, Kenya, Kenyan Finance, Reuters, Initiative
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