IMF urges Kenya to intensify reforms amid growing economic challenges

The International Monetary Fund (IMF) has urged Kenya to intensify efforts to tackle budgetary and economic challenges, following reforms in the East African country that sparked mass protests in June.

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Haimanot Teferra, the IMF team leader who concluded a six-day visit to Kenya, said discussions are centered on policies and reforms to tackle the country’s growing fiscal issues.

“We remain fully committed to supporting the authorities on their efforts to identify a set of policies that could support the completion of the reviews under the ongoing programme as soon as feasible,” Teferra said in a statement Tuesday evening.

She said that the IMF and Kenyan officials had talks on policies and reforms to address the economic and fiscal challenges.

Kenyan authorities reaffirmed their commitment to advancing economic and governance reforms essential for fostering sustainable and inclusive growth for all Kenyans.

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“We will continue our discussions with the authorities,’’ she added.

The IMF’s visit came a few months after Kenyan President William Ruto withdrew the Finance Bill 2024 from the parliament following nationwide protests.

The bill sought to raise an additional 346.7 billion shillings (2.7 billion U.S. dollars) through new taxes on essential goods and services, such as bread and mobile money transfers, to meet government revenue targets.

Some protesters accused the IMF of contributing to the crisis, arguing that the institution’s loans come with stringent conditions that disproportionately impact the poor.

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