https://en.sputniknews.africa/20240628/imf-reportedly-urges-kenya-to-implement-new-taxes-despite-protests-1067282947.html
IMF Reportedly Urges Kenya to Implement New Taxes Despite Protests
IMF Reportedly Urges Kenya to Implement New Taxes Despite Protests
Sputnik Africa
The Kenyan government has implemented tax measures in response to the International Monetary Fund's (IMF) demands to reduce the budget deficit from 5.7% to... 28.06.2024, Sputnik Africa
2024-06-28T15:12+0200
2024-06-28T15:12+0200
2024-07-01T14:12+0200
sub-saharan africa
kenya
economy
william ruto
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east africa
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The IMF has advised Kenya to enforce additional levies despite facing opposition from the people, local portal The Nation reported, citing a senior fund official.It also appealed to the government of President William Ruto to remain committed to the reforms outlined in its program, as it foresaw a potential shortfall in revenue collection.Moreover, the fund reportedly foresaw public outrage but still pushed the government to adopt a controversial reform anyway.Kenya secured a four-year loan agreement with the IMF in 2021 and committed to further financial support for climate initiatives in May 2023, bringing its total access to IMF loans to $3.6 billion. The IMF requires regular reviews of implemented reforms, which for Kenya is every six months, before releasing installments of the funding.Kenya reached a staff-level agreement with the IMF on the seventh review earlier this month. The review theoretically clears the way for $976 million to be released, but it has not yet received the final approval of the IMF board.Kenya's public debt amounted to 70.6% of its GDP at the end of June last year, according to the National Treasury, which exceeds the recommended threshold of 55% known as the "tipping point" advocated by the IMF and the World Bank.However, it is projected that government debt will remain at a "sustainable" level and that the debt-to-GDP ratio will decline, according to the recent budget statement.
https://en.sputniknews.africa/20240628/imf-mostly-to-blame-for-current-bedlam-in-kenya-member-of-local-human-rights-commission-believes-1067278580.html
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kenya, economy, william ruto, international monetary fund (imf), east africa, protests, world bank, reforms
kenya, economy, william ruto, international monetary fund (imf), east africa, protests, world bank, reforms
IMF Reportedly Urges Kenya to Implement New Taxes Despite Protests
15:12 28.06.2024 (Updated: 14:12 01.07.2024) The Kenyan government has implemented tax measures in response to the International Monetary Fund's (IMF) demands to reduce the budget deficit from 5.7% to 3.3% of the GDP. This led to widespread protests across the country, which reportedly resulted in the deaths of at least 25 people and injuries to 67 others.
The IMF has advised Kenya to enforce additional levies despite facing
opposition from the people, local portal The Nation reported, citing a senior fund official.
It also appealed to the government of President
William Ruto to remain committed to the reforms outlined in its program, as it foresaw a potential shortfall in revenue collection.
Moreover, the fund reportedly foresaw public outrage but still pushed the government to adopt a controversial reform anyway.
Kenya secured a four-year
loan agreement with the IMF in 2021 and committed to further financial support for climate initiatives in May 2023, bringing its total access to IMF loans to $3.6 billion. The IMF requires regular reviews of implemented reforms, which for Kenya is every six months, before releasing installments of the funding.
Kenya
reached a staff-level agreement with the IMF on the seventh review earlier this month. The review theoretically clears the way for $976 million to be released, but it has not yet received the final approval of the IMF board.
Kenya's public debt amounted to 70.6% of its GDP at the end of June last year, according to the National Treasury, which exceeds the recommended threshold of 55% known as the "tipping point" advocated by the IMF and the World Bank.
However, it is projected that government debt will remain at a "sustainable" level and that the debt-to-GDP ratio will decline, according to the recent
budget statement.
