A delegation from the International Monetary Fund (IMF) has arrived in Kenya for a fact-finding mission, as announced late Thursday. This visit comes in response to recent deadly protests that led to the suspension of the government’s planned tax increases.
In June, President William Ruto abandoned the finance bill for this year, which has exacerbated the government’s financial situation by increasing the budget deficit, accumulating unpaid bills, and delaying IMF funding disbursements.
Julie Kozack, IMF’s Head of Communications, stated, “This is a fact-finding mission and part of our ongoing, constructive dialogue with the Kenyan authorities to identify a balanced way forward.” She added that more details would be provided once the team has completed its visit.
Kenya secured a four-year loan from the IMF in 2021 and later committed to additional funding for climate change initiatives in May 2023, bringing the total IMF loan access to $3.6 billion. The IMF requires regular assessments of reforms—every six months for Kenya—before releasing funding tranches.
Although Kenya reached a staff-level agreement with the IMF in June on the seventh review of its program, the protests and subsequent withdrawal of the finance bill have delayed the IMF’s executive board’s approval and the disbursement of funds. Kenyan officials have indicated that they anticipate a $600 million tranche might be approved by the IMF board later this month, but no specific date has been set for this decision.
