Former Public Service Cabinet Secretary Moses Kuria has raised concerns about the potential devaluation of the Kenyan shilling to Ksh170 against the US dollar.
During an interview on Citizen TV on Monday, Kuria highlighted the urgent need for capital injection from the International Monetary Fund (IMF) to stabilize the shilling. He expressed that Kenya’s economy is in a precarious state, particularly following the rejection and withdrawal of the controversial Finance Bill 2024.
Kuria warned that if the IMF does not provide support by the end of the month, the shilling could depreciate further. “If the IMF does not come through in another 19 days, this shilling might hit 170 against the dollar. On Sunday, when I go to church, I will say a prayer for John Mbadi in hopes that the IMF remains engaged,” he remarked.
He also urged President William Ruto to continue leveraging his political influence on the global stage, a strategy that has been effective so far, to maintain Kenya’s relationship with international lenders.
Kuria stressed the importance of newly appointed Treasury Cabinet Secretary John Mbadi devising strategies to navigate the financial challenges facing the country. He emphasized that securing the anticipated $1.4 billion (approximately Ksh181.3 billion) from the IMF is crucial.
Additionally, he advised the Treasury CS to manage the financial difficulties, particularly focusing on the maturing loans that need urgent attention.
According to Central Bank of Kenya (CBK) Governor Kamau Thugge, Kenya is expected to receive about Ksh181.3 billion from the IMF this financial year. These funds are seen as essential for stabilizing the economy, especially in the wake of recent economic challenges caused by protests and the withdrawal of the Finance Bill 2024.
