The International Monetary Fund (IMF) has reassured the Kenyan government of support despite the recent developments that led to the withdrawal of the controversial Finance Bill 2024 and dismissal of the entire cabinet.
- The Finance Bill 2024 contained tax measures that were meant to support the 2024/25 budget cycle which includes debt servicing.
- It was thrown out following rejection from the public who argued that the bill will escalate the financial burden to the taxpayers.
- In a scheduled Thursday press briefing by IMF Spokesperson Julie Kozack, the Bretton Woods institution assured its commitment for continued support to Kenya while assessing upcoming developments.
“At every program review we do take the opportunity to assess developments and make adjustments considering the evolving circumstances, and that’s exactly what we’re doing in our active and constructive discussion with the Kenyan authorities,” fund spokesperson Julie Kozack said.
Kozack added that the ongoing reviews will allow for the fund to adjust its fiscal policies in line with Kenya’s needs. Earlier, the IMF reached staff level agreement with Kenya, upon approval by the IMF’s Executive Board, was to adjust Kenya’s total remaining access to 136 percent of its quota, amounting to approximately US$976 million.
“Our main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces and improve its economic prospects and well-being of its people.” she added.
Kenya faces growing debt obligations with a high debt to revenue ratio, squeezing availability of concessional funding. In the previous week, President Ruto spoke by phone with IMF chief Kristalina Georgieva in the days after he withdrew the proposed bill.
