The Deputy Managing Director of the International Monetary Fund, Dr Nigel Clark, is visiting Kenya for the first time since joining the IMF leadership in October. He met with President Ruto, Prime Minister, Central Banker Dr. Kamau Tugu, Finance Minister John Mbadi and Big. Stakeholders included the Finance Ministry Principal Secretary.
The International Monetary Fund recently criticised many lenders for the Kenyan government’s strict tax policies, while it distanced itself from this view, arguing that decisions in the country were still in the political system. The budget Bill 2024, which includes tax increases, was introduced to Parliament in June and sparked public outrage, eventually leading to deadly protests.
Kenya reached a four-year agreement with the International Monetary Fund in 2021 and then signed an additional loan to support climate change in May 2023, bringing the total amount of money borrowed from the International Monetary Fund to $3.6 billion.
“Specific revenue measures are not a design of the IMF. The specific choices made are totally within the purview of the Kenyan government,” Dr Nigel Clarke said in a Media Roundtable on Tuesday.
- Advertisement -
In October, Kenya received $606 million from the IMF after completing the seventh and eighth reviews of the project, with the final review due in April 2025.
“I understand that there have been some misunderstandings… In the end, the Kenyan authorities will choose a specific policy that includes social and political possibilities, especially the income option,” he said.
Kenya’s application for an administrative audit in October was welcomed by the administration, which confirmed that the audit would be completed in the first weeks of 2025. However, the IMF believes that it cannot solve all the administrative problems in the country and can only create a path for reform with the participation of the authorities.
The IMF provides guidance to help achieve and maintain financial and external stability. We always ensure that a range of options are discussed and put on the table when we give advice,” he said.
Clark added that the IMF would support Kenya through programs and incentives. “There are many ways to support Kenya both in and out of business,” he concluded.
