John AdoyiThe International Monetary Fund (IMF) has expressed deep sympathy for the victims of the recent protests in Kenya, which erupted in response to the country’s 2024 Finance Bill that proposed significant tax hikes.
Prime Business Africa reports that the protests, which lasted more than a week, resulted in the deaths of at least 39 people and over 270 injured.
Join our WhatsApp Channel“Let me start by expressing our deepest sympathies to Kenyans affected by the tragic events in Kenya. Our hearts go out to those who have lost their loved ones or suffered injuries,” Julie Kozack, IMF’s Director of the Communications Department said.
Explaining the broader economic context in Kenya and the IMF’s involvement, Kozack noted, “The situation in Kenya reflects broader challenges facing many of our low-income members. Many of these countries are experiencing a funding squeeze, including on account of tighter global financial conditions and reduced availability of concessional financing. Policymakers in these countries, including in Kenya, face a complex balancing act.
“They have pressing spending needs in priority areas such as social programs, health, and education. They are managing rising public debt and debt service and have the challenge of boosting domestic revenue.”
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According to Kozack, the IMF’s support program in Kenya aims to establish sound macroeconomic fundamentals crucial for fostering sustainable and inclusive growth in the country. Kozack highlighted, “For Kenya specifically, the goal of our IMF-supportive programme is to help establish sound macroeconomic fundamentals which are crucial for fostering sustainable and inclusive growth in the country.”
The protests have sparked significant backlash against the IMF from Kenyans and various agencies. Critics including ActionAid International, Kenya’s Programs and Strategy Lead, Samson Orao, accused the IMF of advising President Ruto to raise taxes to service the country’s debt, prioritising debt repayment over funding for basic needs, development, and social programs.
“Raising taxes to service debt instead of addressing issues that affect everyday people, like tax rates or road conditions, is a recipe for disaster and one whip too many on the backs of Kenyans, who continue to tighten their belts and bear the burden of the government’s austerity measures,” Orao said.
In response to these criticisms, the IMF clarified its role in Kenya, emphasising its commitment to guiding policies that generate jobs, particularly for the youth, and improve governance and transparency. The IMF also stressed the importance of ensuring the responsible use of public funds to safeguard social programs and protect the most vulnerable members of society.
“The IMF’s initiatives aim to improve governance and transparency and to ensure responsible use of public funds to safeguard social programs and social spending, particularly to protect the most vulnerable members of society,” Kozack added.
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