Kenya Seeking to Push Stay of Debt Suspension Service to June 2022

Nairobi — Kenya is seeking to have its external Debt Service Suspension Initiative (DSSI) extension pushed to June 2022.

The proposal comes at a time when the International Monetary Fund and World Bank are set to meet next week.

Treasury Cabinet Secretary Ukur Yatani in his proposals asked if the extension date could be revised from the previous deadline of June 2021.

"The enhancement of the Debt Service Suspension Initiative through the extension of the consolidation period for a further one year to June 2022. This action will yield additional external resources, addressing debt vulnerabilities and providing liquidity," said Yatani.

The country is also pushing for the enhancements of the limits of access to IMF facilities including strengthening the quick disbursement of the IMF through rapid credit facility (RCF) and Rapid Financing Instruments (RFI).

Consequently, the government is also pursuing the world lenders to consider re-profiling current debts for vulnerable countries.

"The World Bank and the IMF should consider innovative solutions to re-profiling existing debts owed by poor countries, on a case by case basis to avoid the emergence of a humanitarian crisis in the region," added Yatani.

Kenya joined the DSSI program in January 2021 where data from the National Treasury revealed that the country has so far saved Sh58.1billion in from the program.

The proposals are to be presented to the World Bank and IMF meetings to start from April to April 11.

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