Back to the drawing board as IMF refuses to give RUTO any further loans thanks to Gen Z protests – Look!

Friday, September 6, 2024 – The International Monetary Fund (IMF) is seriously reconsidering giving President William Ruto any further loans thanks to the anti-government protests led by the Gen Zs.

This is after the global lender refused to give Ruto a whopping Ksh77.9 billion after he withdrew the Finance Bill 2024 due to pressure from Gen Zs and the subsequent court ruling that nullified the Finance Bill 2023 which provided ways for IMF to recoup its loans.

IMF has now been forced to reassess Kenya's eligibility to access loans from the lenders. 

This move puts the country’s economic future under renewed scrutiny as the government scrambles to fill a revenue shortfall.

The IMF’s executive board was expected to approve the release of $600 million (Ksh77.9 billion) under the seventh review of Kenya's medium-term funding programme in July.

However, the escalating political crisis following the Finance Bill's rejection and subsequent protests delayed that crucial decision.

The assessments are “ongoing,” an IMF spokesman told Bloomberg in an emailed response to questions on Wednesday.

“IMF remains committed to supporting the Kenyan authorities in addressing the economic challenges it faces,” the spokesman added.

The government needs to find over Ksh1 trillion to plug budgetary shortfalls, according to President William Ruto, and the IMF funding is among the avenues the government is seeking to meet the urgent budgetary needs.

The Kenyan DAILY POST