- President William Ruto withdrew the 2024 Finance Bill in June after bowing to pressure from protesters
- The International Monetary Fund (IMF) expressed its concern following the protests organized by Kenyan youth
- US Ambassador Meg Whitman revealed that the Bretton Woods institution suspended its June disbursement to Kenya following the move
Kenya failed to receive a loan from the International Monetary Fund (IMF) after the President William Ruto refusing to sign the 2024 Finance Bill, US Ambassador to Kenya Meg Whitman has said.
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Whitman said the Bretton Woods institution was scheduled to release the funds on June 12, 2024, but it was suspended following the events of the passage of the condemned bill.
Why did the IMF stop lending to Kenya?
He revealed that the international lender needed steps to increase revenue and numbers to approve the repayment.
“The IMF was going to approve payments around June 12, but when the Finance Bill was released, they could no longer do that because they needed numbers that they could put in their models,” Whitman said.
The ambassador noted that the IMF has started a meeting next week with the authorities Kenya about that payment.
Why the IMF Should Give Money to Kenya
He asked the lender to release the money because Kenya is in a difficult situation.
Whitman also proposed fiscal policies, including job creation, to help the country overcome difficult economic conditions.
“I believe it is important for the payment to be given because Kenya is facing a very difficult situation.
“Kenya can move beyond this by developing its way out, increasing GDP growth beyond 5% (2024) to 8%, ensuring good private and formal sector jobs, and creating a million jobs for a year, which is a tax order,” He said.
How much was the IMF required to finance Kenya?
The IMF urged Ruto's government to remain committed to reforms under its plan while warning of shortfalls in revenue collection.
The international lender was set to lend Kenya KSh 465 billion in its seventh round of additional fund support and credit enhancement programs.
It noted that the deficit was intended to expand the scope of local tax and collect more revenue to finance the 2024/2025 budget.
The IMF expressed its deep concern about the protests against the 2024 Finance Bill and called for broad public consultation in policy making.
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