The International Monetary Fund (IMF) has dispatched a team to Kenya for a fact-finding mission amid the fallout from recent protests that led to the suspension of the government’s planned tax hikes.
In June, President William Ruto’s administration shelved the controversial finance bill due to public unrest. This decision has exacerbated Kenya’s budget deficit, increased unpaid bills, and delayed IMF funding disbursements.
Julie Kozack, IMF’s Head of Communications, stated that the mission is part of ongoing discussions with Kenyan authorities to find a balanced way forward. Details of the visit will be provided once the team completes its assessment.
Kenya had secured a four-year loan agreement with the IMF in 2021 and added additional lending for climate change initiatives in May 2023, totaling $3.6 billion. Regular reviews of Kenya’s economic reforms are required for the IMF to release funding tranches.
Although a staff-level agreement for the seventh review was reached in June, the protests and subsequent withdrawal of the finance bill have delayed final approval from the IMF’s executive board. Kenyan officials anticipate a decision on a $600 million tranche later this month, but no date has been set for the board’s meeting.
