[HTML payload içeriği buraya]
spot_img

IMF Signals Major Policy Shift for Kenya Amid Economic and Political Turmoil

Date:

NAIROBI, Kenya– The International Monetary Fund (IMF) is reevaluating its stance on Kenya, signaling a potential shift in its economic strategy towards the nation. 

Late last week, the IMF announced plans to assess Kenya’s macro and microeconomic environment afresh, incorporating these findings into its ongoing program reviews with Kenyan authorities.

According to IMF spokesperson Julie Kozack, the adjustments will consider the evolving situation in Kenya, including recent events such as the demonstrations leading to the withdrawal of the Finance Bill 2024 and the dissolution of the cabinet.

One of the IMF’s primary concerns is Kenya’s declining tax-to-GDP ratio. The ratio has been on a downward trend for nearly a decade, peaking at 15.4pc in the 2014/2015 financial year. 

Concurrently, the public debt service to revenue ratio, an indicator of Kenya’s ability to repay its debt, has surged from about 35pc to around 60pc of revenues. 

This trend has significantly reduced the resources available for essential development spending, including education, health, and social programs.

The IMF is urging the Kenyan government to mobilize more revenues to address these challenges. 

In its statement, the IMF emphasized the need for transparency, accountability, and robust anti-corruption measures to ensure sustainable growth.

Despite the economic challenges, the IMF has expressed its commitment to supporting Kenya’s efforts to achieve inclusive and sustainable growth. 

The fund is set to disburse 131 billion shillings in new financing as part of its seventh multi-year program with Kenya. 

The IMF’s reassessment of Kenya’s economic landscape reflects its adaptive approach to the nation’s evolving challenges.

George Ndole
George Ndole
George is an experienced IT and multimedia professional with a passion for teaching and problem-solving. George leverages his keen eye for innovation to create practical solutions and share valuable knowledge through writing and collaboration in various projects. Dedicated to excellence and creativity, he continuously makes a positive impact in the tech industry.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Trending

More like this
Related

Senate Approves New Rules Holding Producers Accountable for Plastic Pollution

NAIROBI, Kenya - The Senate Committee on Delegated Legislation...

MSS Refutes Claims of Kenyan Officers Resigning in Haiti Over Delayed Salaries

PORT-AU-PRINCE, Haiti - The Multinational Security Support (MSS) mission...

Kindiki Graces Great  Chepsaita Cross Country in Uasin Gishu

NAIROBI, Kenya- Uasin Gishu County turned into a global...

CcHUB Launches Creative Economy Incubator and Entertainment Hub in Nairobi

NAIROBI, Kenya- Africa’s storytelling landscape just got a massive...