Nyakang’o warns Kenya against being ‘IMF puppet’ in race for cash
Nyakang’o notes that IMF programmes carry significant tradeoffs...
✨ Key Highlights
Kenya's Controller of Budget Margaret Nyakang’o has warned the government against becoming an IMF puppet, urging expanded budgetary support options to avoid eroding domestic policy-making reforms. She also raised concerns about the planned National Infrastructure Fund (NIF) established under the Government Owned Enterprises (GOE) Act.
- Dr. Nyakang’o emphasized that IMF programmes carry significant tradeoffs, notably the conditionalities requiring rapid fiscal tightening.
- The GOE Act, a key structural reform aligned with IMF conditionalities, bypasses Parliamentary scrutiny and the CoB's office, weakening public oversight.
- The NIF is mandated to mobilize non-debt capital and aims to raise Sh5 trillion to finance national priorities, including re-investing proceeds from the monetization of public assets like the privatization of Kenya Pipeline Company (KPC) and divestiture from Safaricom.
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National Infrastructure Fund Bill Tabled; Banks Reprice Loans After CBK Rate Cut - February 2026
Kenya is moving to create the National Infrastructure Fund after the National Infrastructure Fund Bill, 2026, was tabled in Parliament. The fund aims to mobilize up to Sh5 trillion by privatizing State entities and selling government assets. Concurrently, Controller of Budget Margaret Nyakang’o has warned the government against becoming an 'IMF puppet' and raised concerns about this planned fund. In a separate development affecting the financial sector, commercial banks including NCBA Bank Kenya, KCB Bank Kenya, and Equity Bank Kenya have begun repricing their loans. This action is in response to the Central Bank of Kenya’s (CBK) latest rate cut and a new risk-based pricing framework.
