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Kenya has submitted an economic repair plan to the International Monetary Fund and it expects the fund’s board to review it for approval at the end of August, the country’s chief minister told a parliamentary panel.
Kenya had to rapidly draw up new spending cuts after widespread youth-led protests against tax hikes previously put forward by President William Ruto’s government left at least 50 people dead. Kenya’s chief minister Musalia Mudavadi said that the Treasury “has had a very robust engagement with the International Monetary Fund” despite the tax-hike setback.
“It is our desire and hope that Kenya’s proposition will receive favourable consideration so that we can move beyond the challenges that we are facing,” Mudavadi told the parliamentary budget committee in remarks seen by Reuters yesterday.
The IMF did not immediately comment. The East African nation has a US$3,6 billion IMF programme, and the Fund had reached a staff level agreement on the seventh review of Kenya’s programme in early June.
But its board had not signed off on the review when Ruto scrapped the tax hikes that were a core part of its plan to meet IMF targets, and investors said the political turmoil would make getting IMF cash trickier. — Reuters
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