‪Ruto Spoke To IMF Chief After Rejecting Tax Hikes In The Finance Bill 2024, Sources Say‬

President William Ruto spoke by phone with International Monetary Fund chief Kristalina Georgieva in the days after he withdrew $2.7 billion in proposed tax hikes in response to deadly protests, two diplomatic sources told Reuters.

The two sources, who spoke on condition of anonymity, did not provide details about Ruto and Georgieva’s phone call.

However, they said there was agreement among major donors that the IMF needed to show flexibility on program targets as Kenya looked to fill the gap caused by the bill’s withdrawal.

One of the sources added that the government should show a commitment to reducing wasteful spending, cracking down on corruption and increasing accountability in exchange for that flexibility.

The finance bill containing the tax increases was central to policy reforms agreed by Kenya with the IMF as part of a lending program worth $3.6 billion.

Analysts say its withdrawal a week ago is likely to result in Kenya missing key program targets, although the government does not urgently need cash from the IMF after it was able this year to repay a bond that was originally worth $2 billion by issuing a new seven-year bond.

The IMF has been a major target of the ire of young Kenyan protesters, who have accused it of being the driving force behind the proposed tax hikes.