Kenya has called on the International Monetary Fund (IMF) to increase its quotas to all members as a means of strengthening the institution in order to support growth especially among low income countries.
IMF quotas which are denominated Special Drawing Rights (SDR) are determined by the country’s strength in the world economy is used by the multilateral lender to extend credit facilities to member countries.
“We are pressing forward to meet the financing needs of the Poverty Reduction and Growth Trust, so that the IMF can continue to lend to low-income countries now and in the future,” said Prof. Njuguna Ndung’u, National Treasury and Economic Planning.
As of June this year, IMF’s total quotas stood at SDR 983 billion translating into a lending capacity of about SDR 696 billion which is equivalent to $925 billion.
Data from the IMF indicates that the Kenya currently has 542.8 million quotas equivalent to SDR 377.13 million.
During the closed door roundtable discussion with a small group of finance ministers representing Emerging Markets and Developing Countries (EMDCs) on International Monetary Fund Policy Priorities and how the Institution Should Support its Membership during the ongoing 2023 World Bank/International Monetary Fund Annual Meetings in Marrakech, Morocco, Ndung’u called upon IMF to work with shareholders and management on ways to elevate the voices of emerging markets and developing countries.
“We want to make sure the IMF delivers on its core mandate of surveillance, capacity development, and lending, and demonstrates a strong track record of guiding countries back onto sustainable macroeconomic trajectories,’’ he added.
“We also need the IMF to play its role in an unflinching and rigorous way so that countries make needed adjustments to bring their economies to a sound footing. No other institution can provide macroeconomic guidance along with funding to steer countries to better macroeconomic outcomes,”
The US Secretary of the Treasury Janet Hellen supported the call for a third IMF seat for Africa among other requests made by the group.