The decision to do away with the Finance Bill 2024 cost Kenya Ksh.131 billion – according to US Ambassador to Kenya, Meg Whitman.
The facility had been aligned by the International Monetary Fund (IMF) and was to be issued by June – at a time when youthful Kenyans hit the streets in absolute defiance of the Bill over its punitive taxation measures.
“The IMF was going to approve a disbursement around June 12 but when the Finance Bill got pulled down, they could no longer do it,” said Meg Whitman.
The Kenyan government had intended to collect more than Ksh.300 billion had Ruto signed the Bill into law.
But the youthful Kenyans accused American-based IMF of pushing for funding in the debt-ridden country despite the ballooning debt which now sits at over Ksh.10.5 trillion.
IMF Must Re-think Decision
The funding usually comes with dire conditions which Kenya must meet – with majority of Kenyans not finding them fit for their sustainability.
Also Read: President William Ruto Declines to Sign Finance Bill 2024 into Law over Unrest
But despite IMF withdrawing the funding, Whitman said it was necessary for the multilateral lender to re-think the move, pointing to a possible fruitful discussion by end month August.
“I believe it is important for that disbursement to be given out because Kenya faces a very difficult situation,” the US ambassador added.
This even as she challenged President Ruto to come up with measures that would help address the current fiscal challenges facing the country.
IMF Historical Fundings
The multi-billion loan was expected to be the largest disbursement by the multilateral lender since 2021.
On January 17, 2024, IMNF approved a $941 million (Ksh.121.2 billion) lending boost to Kenya, with an immediate disbursement of $624.5 million (Ksh.80.4 billion), offering some relief to the East African country as it battles financial pressures.
