International Monetary Fund personnel in Kenya for fact-finding mission following protests

As part of its attempts to devise a path forward in the aftermath of fatal protests that disrupted the government’s planned tax increases, a team of officials from the International Monetary Fund is visiting Kenya on a fact-finding tour, the IMF announced late on Thursday.

In June, President William Ruto discarded the finance bill for this year, resulting in a larger budget deficit for the heavily indebted government, increasing non-payment of bills, and a delay in the distribution of IMF payment.

“This mission aims to gather factual information and is a component of our continuous and productive discussion with the Kenyan authorities to determine a fair and equitable course of action,” stated Julie Kozack, the head of communications for the IMF, during a news briefing.

She refrained from offering any further information, emphasising that additional updates will be provided upon the completion of the team’s task.

Kenya entered into a four-year loan agreement with the International Monetary Fund (IMF) in 2021 and became eligible for further financing to bolster climate change initiatives in May 2023, bringing its overall access to IMF loans to $3.6 billion.

In Kenya’s instance, the IMF mandates periodic evaluations of reforms, typically every six months, prior to disbursing cash tranches.

In June, Kenya successfully negotiated a staff level agreement with the IMF about the seventh review of its program. However, the protest and subsequent withdrawal of the finance bill deferred the approval by the fund’s executive board and the following payment.

Previous statements by Kenyan government officials indicate their anticipation of the IMF board granting approval for the distribution of a $600 million tranche later this month. However, a specific date for a meeting to deliberate on this matter has not been established.