Kenya’s President Uhuru Kenyatta says he will seek a $2bn bailout from the International Monetary Fund (IMF) on the sidelines of the World Economic Forum (WEF) in Davos, Switzerland, on Thursday.
Kenya’s President, Uhuru Kanyewaung, said he would seek a 2bn-dollar aid package from the IMF, which has not yet received a response from the US, which he accused of failing to fulfil its obligations under the International Financial Institutions and Investment (IFII) Act.
Kenyan exports to China are up to 20 per cent in the first three months of this year, with US exports down to the US$6bn mark in March, and imports down to US$3bn.
Kenyatta is also pressing the IMF to help ease the impact of the economic crisis in Kenya.
He has said the country will need a “significant” IMF infusion to help lift the economy out of a deepening recession.
“I think we have a lot of leverage over the IMF because we have been so badly hit by the financial crisis,” Kenyata said on Friday.
“We have already paid the IMF what is necessary to be able to get back to normalcy.
But now we need to repay what they lent us.””
We need a large amount of money,” he added.”
The IMF can play a role if we do not want to be indebted to them.”
Kenya has a population of 7.8m, and is Kenya’s third largest economy.
The economy is expected to grow to US $1.5tn this year and by 2020 to US more than $3tn.
Kenya is the poorest country in Africa.
“We are not going to be happy unless the IMF gets back to the $2 billion figure, and they will come back with a new IMF bailout,” Kenyan Prime Minister Uhuru Ould Chee said in an interview with the BBC.
Kenya needs a bailout, and it is a huge debt, but it has to be repaid.
There are some people who are asking the IMF if it has not paid the money, and I am asking the question of: ‘Is the IMF going to bail us out?’
“Kenyan Finance Minister Paul Kamoza told BBC News: “It is up to the IMF.
It is the responsibility of the IMF whether or not it is going to pay.
“The IMF’s first response has been a request for more than half a billion dollars, but the IMF said on Monday that it had not received any payment.
Keniesa’s government has accused the IMF of failing in its obligation under the IFII Act.
The IFII is the only law governing the IMF which does not have any provision to limit the amount it lends.
In December, Kenyans Finance Minister Nairobi Abacha said the IMF had failed to fulfil their obligations under both the IFI and the IFA.
Kenia is one of the world’s poorest countries, with more than 5.4m people living below the poverty line, a figure that has worsened since the financial crash of 2008.