IMF promises to engage Kenyans on tax policy with govt a day after Ruto sacks Cabinet

• On Thursday, July 11, President William Ruto fired all Cabinet Secretaries (CS) and Attorneys General, except for the Prime Minister CS
• Ruto bowed to public pressure after anti-government protests led to the withdrawal of the stale Finance Bill 2024
• The International Monetary Fund (IMF) said it was deeply concerned about the current turn of events in the country and called for broad public consultations to develop policies

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business and technology journalism and offers in-depth knowledge of economic trends in Kenya and the world.

Global lender the International Monetary Fund (IMF) wants the government to involve Kenyans in shaping fiscal policy.

This follows a recent wave of anti-government protests that led to the withdrawal of the vacated Finance Bill 2024 and the dissolution of the Cabinet by President William Ruto.

How the IMF wants the Ruto government to set tax policy

During a press conference on Friday, July 12, IMF spokeswoman Julie Kozack said policymakers in low-income countries like Kenya face a difficult task of balancing urgent needs in priority areas, managing rising debt and raising domestic revenues.

Kozack revealed that the IMF is currently engaging with the Kenyan authorities on the proposed income policy to ensure that the targets are met.

“We remain committed to helping Kenya establish a sound macroeconomic foundation that is key to sustainable growth and job creation, especially for the country’s youth.

“It is also important that fiscal policy goes through a broad consultation process so that it can gain public support. We are confident that we will be able to find a sustainable way forward,” the IMF said.

The IMF reiterated that its primary objective is to support Kenya in overcoming difficult economic challenges and improving the economic well-being of Kenyans.

What the IMF said about Kenya’s tax protests

The international organisation assured its commitment to working with Kenya and charting a course towards solid, sustainable and inclusive economic growth.

“We are deeply concerned by the tragic events in Kenya in recent weeks and saddened by the loss of life and numerous injuries. Our thoughts are with all those affected by the unrest in the country,” the organization noted.

The IMF called for careful, efficient and effective use of taxpayers’ funds in priority areas to avoid negative reactions from the public.

What Kenyans Told IMF Amid Protests

Kenyans have launched online protests against the IMF days after the financial institution backed proposed taxes included in the 2024 finance bill.

On Monday, June 17, the day before the parliamentarians were to begin their debate on the controversial bill, irritated internet users began complaining on the IMF’s X website.

On Tuesday, June 18, netizens called on the institution to stop lending to Kenya and condemned the Bretton Woods institution for negotiating multi-billion loans with President William Ruto.

Proofreading by Asher Omondi, current affairs journalist and editor at TUKO.co.ke.

Source: TUKO.co.ke