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.