Job cuts loom in the public sector following the tough conditions set by the International Monetary Fund (IMF) to the country to secure a KSh 255 billion loan.
According to The Standard, one of the international lender’s rules was overhauling nine loss-making state-owned enterprises to either return to profitability or start operating more effectively.
This means several civil servants face the sack as part of the government’s austerity measures set to be implemented.
The three-year financing package is meant to support the COVID-19 fight.
This came barely a day after economist David Ndii 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.