A Cautionary Tale of IMF Loans: Economic Entrapment and Sustainable Growth.
Kenya’s encounter with IMF loans in the 1990s serves as a stark reminder of the perils associated with external debt. This article unravels the story, shedding light on how the IMF’s conditionalities, such as the imposition of a value-added tax (VAT) on fuel, can lead to short-term fiscal boosts and long-term economic downturns. Examining the pitfalls of IMF-imposed SAPs, it urges developing nations to exercise caution and prioritize sustainable economic growth over quick fixes.
Lessons Kenya can learn from Egypt as inflation hits record high of nearly 40%
Egypt’s soaring inflation at 39.7% in August unveils critical economic lessons for Kenya. This analysis delves into the impact on currency value, food price hikes, and strategies to ensure economic stability in the face of challenges.