
The International Monetary Fund (IMF) has reiterated its commitment to keep supporting Kenya – according to a statement delivered by the Fund’s spokesperson Julie Kozack.
Kozack said IMF will assist Kenya establish sound microeconomic policies to help the east African country manage its current financial strains.
“We remain committed to help Kenya establish sound macroeconomic fundamentals, crucial for sustainable growth and job creation, especially for the country’s young people,” said Kozack.
IMF on Finance Bill Rejection
The multilateral lender said its main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces, and improve its economic prospects and the well-being of its people.
“We are committed to working together with Kenya to chart a course towards robust, sustainable, and inclusive growth.”
It also said any potential modifications to the IMF program will be based on thorough analysis and constructive dialogue with the Kenyan authorities on their proposed policy package, with the aim of addressing the country’s economic challenges effectively.
Given the wave of protest by the youthful Kenyans, IMF said it will do best moving forward to include the public in formulating favorable tax policies to win their trust.
Also Read: What it Means as President Ruto Signs Appropriation Bill 2024 After Rejecting Finance Bill
“It is also important that these policies go through a process of broad consultation so they can gain public support.”
Ruto Phones IMF
The IMF program was expected to provide Ksh124 billion ($976 million) in external funding in fiscal 2025 or about one-third of the government’s budgeted net external financing.
In a phone call with IMF boss Kristalina Georgieva, Ruto was informed that the withdrawal of the Bill was likely to result in Kenya missing key program targets.
Georgieva urged President Ruto to show a commitment to reducing wasteful spending, cracking down on corruption and increasing accountability in exchange for that flexibility.
“We are deeply concerned about the tragic events in Kenya in recent weeks and saddened by the loss of lives and the many injuries. Our thoughts are with all the people affected by the turmoil in the country,” said IMF.
IMF’s sentiments come a day after President William Ruto Thursday resolved to sack his entire cabinet, effective immediately, save for the position of Prime Cabinet Secretary Musalia Mudavadi.
The Foreign Affairs Ministry was also spared – whose occupant is Mudavadi.
President Ruto bowed to the mounting pressure from the young Kenyans – christened Gen Z, who took to the streets calling for the rejection of the Bill in its entirety.
The president said the move came after “reflection, listening to Kenyans, and after holistic appraisal of my cabinet”.
He has said he will now consult widely in order to set up a broad-based government.
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