Kenya Submits Economic Repair Plan to IMF

Kenya has submitted an economic repair plan to the International Monetary Fund (IMF), anticipating its review and approval at the end of August, following deadly protests against tax hikes proposed by President William Ruto's government. Chief Minister Musalia Mudavadi expressed hope for favorable consideration of the plan, which was necessitated by the unrest that resulted in at least 50 deaths and forced rapid spending cuts. The government's budget deficit is projected to rise to 4.2% of GDP, highlighting the challenges of fiscal consolidation. Economic experts have criticized the IMF's existing programs in Kenya, claiming they impose overly restrictive conditions that hinder growth and contribute to social unrest. They argue that the imposed tax revenue targets have led to contentious reforms and instability in the tax environment. Some experts suggest that the IMF's approach intrudes on Kenya's sovereignty and compromises investor confidence.