How Kenya Intends To Pay The IMF Loan In New Revenue Plan
Kenya may be required to submit a new revenue plan to the International Monetary Fund following the withdrawal of the Finance Bill 2024.
An analysis conducted by Al Jazeera on Sunday revealed that the government, acting under the IMF’s stringent revenue-raising measures, will need to elaborate on its next course of action in order to meet its targets.
According to IMF regulations, the organization reviews a country’s proposed economic reforms before releasing any funding; in Kenya’s case, the reforms are presented once every six months.
IMF really wants to fuck us a good one,and i agree Ruto is a puppet president we don't deserve him.
— GUSTAVO (@luhya_kidd) July 6, 2024
Also the speed he has used to constitute this one committee while ignoring IEBC.#RutoMustGo pic.twitter.com/yzLs0VPhpo
However, with the imposition of additional taxes no longer an option, the government is expected to develop an alternative plan to present to the multilateral lender.
“Kenya will now likely have to submit a new revenue plan to the IMF,” analysts said.
Al Jazeera also reported that some of the austerity measures announced by Ruto would play an important role in developing the plan to be submitted to the IMF.
According to expert analysis, President Ruto’s recently announced austerity measures were a positive step for Kenya.
Under the new measures, the government is expected to raise funds by cutting Ksh177 billion shillings ($1.39 billion) from the budget for the fiscal year that began this month and borrowing approximately Ksh169 billion shillings ($1.31 billion).
Furthermore, the experts supported the government’s actions, claiming that they should have been the first port of call for the government rather than imposing taxes on Kenyans.
“They’re now basically doing everything they were supposed to do before,” Dumebi Oluwole, a senior economist with Stears Inc stated in the analysis.
“When the IMF gives you conditions, you don’t need to pass on the bulk to the people when you know the situation in your country,” she added.
Kenya's President William Ruto spoke to IMF chief after pulling tax hikes in response to deadly protests, according to sources, Niger's junta agrees to talks with Benin's government to help restore relations. This and more in the biggest business headlines from Africa this week pic.twitter.com/hMcQFfuWPo
— Reuters Business (@ReutersBiz) July 5, 2024
This new revelation follows President Ruto’s phone call with International Monetary Fund (IMF) Managing Director Kristalina Georgieva earlier this week.
Though the details of the call were not disclosed, diplomatic sources told Reuters that there was a push for the IMF to be more flexible on Kenya’s borrowing terms.
How Kenya Intends To Pay The IMF Loan In New Revenue Plan
