After a six-day visit to Kenya, an International Monetary Fund (IMF) staff team has issued an update on the formation of policies that will manage financial challenges in the country.
This follows the rejection of the Finance Bill 2024 and the GenZ-led anti-tax protests.
According to the IMF, discussions held with the Kenyan government revolved around policies and reforms to address the subsequent evolving economic and fiscal challenges.
“The Kenyan authorities and IMF staff had productive discussions on the authorities’ policies and reforms to address the evolving economic and fiscal challenges,” said Team leader Haimanot Teferra.
Also Read: IMF Dispatches Special Team to Kenya for Mission; Details of Visit
IMF Explains Next Move with Kenya
Kenya secured a four-year loan agreement with the IMF in 2021 and committed to borrowing in May 2023 to support climate change initiatives, bringing its total IMF loan access to $3.6 billion.
Further, in June 2024, Kenya reached a staff-level agreement with the IMF for the seventh review of its program.
However, the GenZ-led protests and the withdrawal of the finance bill 2024 have delayed the IMF executive board’s approval and the subsequent disbursement of funds.
Haimanot Teferra has said that the IMF is on track and is supporting Kenya in identifying a set of policies that could support the completion of the reviews under the ongoing program and partnerships.
“We remain fully committed to supporting the authorities in their efforts to identify a set of policies that could support the completion of the reviews under the ongoing program as soon as feasible.
“The authorities expressed commitment to advancing economic and governance reforms which are crucial for fostering sustainable and inclusive growth that benefits all Kenyans. We will continue our discussions with the authorities,” a press release from IMF read in part.
Also Read: Kenya Submits New Economic Plan to IMF After Fall of Finance Bill
Kenya Submits Proposal
In July, Kenya officially submitted an economic repair plan to the IMF for consideration after the rejection of the Finance Bill 2024.
Speaking before the parliamentary budget committee, Prime Cabinet Secretary and Acting Treasury CS Musalia Mudavadi said that the IMF board was expected to review the plan for approval at the just concluded meeting.
Additionally, Mudavadi told the parliamentary budget committee that the National Treasury had maintained engagement with the IMF, despite the protests.
“The Treasury has had a very robust engagement with the International Monetary Fund, even in the midst of the challenges we have been facing,
“It is our desire and hope that Kenya’s proposition will receive favorable consideration so that we can move beyond the challenges that we are facing,” said Mudavadi to the panel.
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