IMF staff in Kenya on fact-finding mission after protests By Reuters

NAIROBI (Reuters) – A team of International Monetary Fund staff is visiting Kenya on a fact-finding trip, the IMF said late on Thursday, as part of efforts to find a way forward in the wake of deadly protests that have wrecked the government’s plan. tax increases.

President William Ruto scrapped this year’s funding bill in June, leaving the heavily indebted government with a bigger budget deficit for this financial year, rising unpaid bills and a delay in disbursement of IMF funding.

“This is a fact-finding mission and part of our ongoing and constructive dialogue with the Kenyan authorities to find a balanced way forward,” Julie Kozack, head of communications for the IMF, told a news briefing.

She did not provide further details, saying further updates will be given when the team completes its mission.

Kenya agreed a four-year loan with the IMF in 2021 and signed on for additional loans to support climate action in May 2023, bringing total access to IMF loans to $3.6 billion.

The IMF requires regular reviews of reforms – in Kenya’s case every six months – before releasing financing tranches.

Kenya reached a staff-level agreement with the IMF in June on the seventh review of its program, but the protest and subsequent withdrawal of the financing bill delayed approval by the fund’s executive board and subsequent payment.

Kenyan government officials have previously said they expect the IMF board to consider approving the payment of a $600 million tranche later this month, but no date has been set for a meeting to discuss it.