By Jehoshaphat Kanyoro Njaro
The International Monetary Fund (IMF) has voiced its concern over the recent unrest in Kenya, triggered by widespread demonstrations against the Finance Bill 2024.
Julie Kozack, IMF Director of Communications, expressed sorrow over the tragic events, including the loss of lives and the destruction of property, and emphasized the IMF’s ongoing support for Kenya during this tumultuous period.
“We are deeply concerned about the tragic events in Kenya in recent days and saddened by the loss of lives and the many injuries. Our thoughts are with all the people affected by the turmoil in the country,” Kozack stated.
She reaffirmed the IMF’s commitment to helping Kenya navigate its economic difficulties, stressing the importance of achieving sustainable and inclusive growth.
The protests were fueled by public dissatisfaction with austerity measures mandated by the IMF as conditions for loan disbursements.
Key among these measures were the removal of fuel subsidies and a substantial increase in Value Added Tax (VAT) on fuel, which doubled from 8% to 16%.Since February 2021, the IMF has disbursed over Ksh.341 billion to Kenya under the Extended Fund Facility (EFF) arrangement.
This program is designed to provide financial assistance to countries grappling with significant balance of payments issues due to structural challenges, offering a longer repayment schedule to facilitate necessary economic reforms.
Several Kenyan politicians have criticized the government for complying with these IMF-imposed conditions, arguing that they exacerbate the economic crisis by increasing the cost of living and reducing the purchasing power of ordinary Kenyans.
Amidst the rising tensions, the IMF’s statement highlighted its dedication to working closely with Kenya to address its economic challenges and improve the overall well-being of its citizens.
“The IMF is closely monitoring the situation in Kenya. Our main goal in supporting Kenya is to help it overcome the difficult economic challenges it faces and improve its economic prospects and the well-being of its people. We are committed to working together with Kenya to chart a course towards robust, sustainable, and inclusive growth,” Kozack affirmed.