IMF Pledges Continuous ‘Support’ To Kenya Despite Anti-Finance Bill Protests

The International Monetary Fund, or IMF, has pledged to continue working in close support of Kenya following discontent over Kenya’s government attempts to push the now-withdrawn Finance Bill 2024.

In a brief statement on Wednesday, the IMF expressed concern over the situation in Kenya after several protesters were killed in the demonstrations.

The multilateral lender disclosed that it is “closely monitoring the situation” and its main goal is “helping Kenya to overcome the difficult economic challenges it faces and improve its economic prospects and the well-being of its people.”

We are deeply concerned about the tragic events in Kenya in recent days 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,” IMF Director of Communications, Ms Julie Kozack, said.

The statement was released after Kenyan President William Ruto declined to sign the contentious bill due to widespread dissatisfaction among Kenyans.

Contrary to the IMF statement, local reports indicate that the IMF insists on broadening the tax base and improving revenue collection, arguing that fiscal consolidation is necessary to reduce debt and external vulnerabilities. Corroborative evidence supporting such reports is the IMF’s political assessment risk assigned to Kenya in January 2024 to push through with tax reforms despite warning of potential mid-level unrest. This was at the time the IMF disbursed $684.7 million to the Kenyan government under President Ruto.

It is worth noting that the IMF, which Robert Barro notably described as an entity “that does not put out fire, but starts them,” has been pushing Ruto’s administration to implement strict tax policies as part of its recommendation to help the country clear its debt tab.

With the help of the U.S., the fund encourages bad economic policy by rewarding failure with showers of money,” Barro wrote in his article.

The Kenyan government, which owes billions, attempted to impose more taxation on citizens to cover debt, summarising the cause of unrest in the East African nation.

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Mayowa Durosinmi

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M. Durosinmi is a West Africa Weekly investigative reporter covering Politics, Human Rights, Health, and Security in West Africa and the Sahel Region

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