Well-known economist David Ndii has warned Kenyans to prepare for tough times after the government took a Ksh. 255 billion loan from the International Monetary Fund (IMF).
Ndii in a statement explained that the loan the country has taken which is known as structural adjustment loan (SAPs) comes with conditions such as strictness on taxes and spending cuts.
He added that this means that the country will now be creditworthy and can now continue to borrow and servicing debts.
“It comes with austerity (tax raises, spending cuts, downsizing) to keep Kenya creditworthy so that we continue borrowing and servicing debt. IMF is not here for fun. Ask older people,” he said.
The influential economist also slammed Kenyans who voted for President Uhuru stating that they were now getting what they asked for.
He said that Kenyans are in denial that the head of state has shafted them and they’ve supported him all along are venting on the receiver.
Ndii noted that the country is broke and the government has filed for bankruptcy protection.
He added that creditors have now appointed IMF as the receive-manager.
Earlier on, over 210,000 infuriated Kenyans had signed a petition through change.org in a bid to stop International Monetary Fund (IMF) from releasing loan to Kenya.
Kenyans led by one Jefferson Murrey expressed their concerns on how President Uhuru had made it a habit to borrow loans without any explanation.
Murrey in a statement said that the petition is in recognition of the fact that previous loans to the Kenya government have not been prudently utilized and have often resulted in mega corruption scandals.
He added that the scandals have not deterred the ruling regime from more appetite for more loans, especially from China.
He further said that at the moment, Kenyans are choking under the heavy burden of taxation, with the cost of basic commodities such as fuel skyrocketing, and nothing to show for the previous loans.
According to reports from different media outlets, between March and November 2020, Kenya borrowed Sh971 billion for the war against Covid-19 which translates to Sh121 billion borrowed each month in the eight-month period.
Treasury Cabinet Secretary Ukur Yatani has defended the acquisition of the loan and said it was necessary to help in the fight against the COVID-19 pandemic.