IMF Disburses $606 Million Loan to Kenya

The International Monetary Fund (IMF) has disbursed $606 million to Kenya, providing much-needed financial support amid economic challenges and dwindling revenues. However, the IMF warns that a difficult path lies ahead, emphasizing the need for fiscal consolidation, expanded tax collection, and anti-corruption measures. Kenya is urged to reform its tax regime to ensure efficiency and equity while addressing debt vulnerabilities, as prior fiscal performance fell short of targets. Violent protests have previously disrupted financial legislation, notably leading to the withdrawal of a Finance Bill that sought to expand the tax base. The IMF has committed to sending experts to help Kenya combat corruption and improve public financial management. This funding and expert support are crucial for Kenya to navigate its liquidity challenges, with another program anticipated when the current IMF program concludes in April 2025.