The International Monetary Fund announced on Thursday that it is assessing recent events in Kenya, and program reviews provide a chance to make necessary adjustments.
"At every program review, we do take the opportunity to assess developments and make adjustments considering the evolving circumstances, and that's exactly what we're doing in our active and constructive discussion with the Kenyan authorities," Director of the IMF Communications Department Julie Kozack said in a press briefing.
She noted that the aim of their IMF-supported program is to help set up "sound" macroeconomic fundamentals, which are essential for promoting sustainable and inclusive growth in the country and for creating job opportunities for the Kenyan population, especially the youth.
The IMF is actively working with the authorities to achieve these goals and understands that there is a "careful balance" between delivering public services and ensuring sufficient financing, Kozack added.
In late June, local portal The Nation reported, citing a senior fund official, that the IMF advised Kenya to introduce new tax rates despite popular opposition and urged the country's government to remain committed to reforms. The fund believes there'll be a shortfall in revenue collection. Moreover, the fund reportedly foresaw public outrage but pushed the government to pass the controversial reform anyway.
On Thursday, the country's leader, William Ruto, sacked virtually all cabinet secretaries and the attorney general of the nation amid the protests, saying that the decision was made "upon reflection, listening keenly to what the people of Kenya have said, and after a holistic appraisal of the performance of the cabinet and its achievements and challenges."
A week earlier, Ruto announced the dissolution of 47 state corporations in a bid to cut government spending following the withdrawal of the Finance Bill 2024.
The bill proposed a 16% value-added tax on bread, sugar transportation, mobile and financial services, and foreign currency transactions. It also included a 2.5% excise tax on cars and vegetable oil.