According to Kristalina Georgieva, the head of the International Monetary Fund (IMF), IMF forecasts that the war will worsen the prospects of more than 140 nations in the coming months.
“With the challenges of the pandemic, poverty increases and it will be harder to lift people out of poverty,” Eric LeCompte, executive director of Jubilee USA
Kenya is one of many nations already feeling the economic effects of the rising crisis in Ukraine, which has further disrupted the global supply chain as a result of Russia’s invasion.
On February 24, when Russia invaded Ukraine, global crude oil prices jumped to a near 14-year high of $140 per barrel before falling.
Petrol and fuel prices increased by Sh9 in this month’s review, affecting Kenyan motorists, industries, and households.
In Nairobi, a litre of Super petrol costs Sh144.62, up from Sh134.72, and a litre of diesel costs Sh125.50, up from Sh115.60.
Due to the worsening crisis, the IMF has asked for revisions to the G20 Common Framework, which was established a year and a half ago to handle important global economic concerns such as international financial stability.
Up to 73 countries, including Kenya, are eligible for debt relief, according to the lender’s data, but just three have applied so far.
Ethiopia, Zambia, and Chad, who filed for the framework, have yet to see any debt relief from the G20.
As of April, Kenya’s total public debt stood at Sh8.2 trillion, or 70% of the country’s GDP.
Every time the shilling falls a unit versus the US dollar, the country’s debt rises by Sh40 billion.