IMF Pulled Down Funding To Kenya After Ruto Withdrew Finance Bill 2024, US Ambassador Says

• President William Ruto withdrew the Finance Bill 2024 in June after bowing to pressure from protesters
• The International Monetary Fund (IMF) expressed its concerns following the protests organised by Kenyan youth
• US Ambassador Meg Whitman revealed that the Bretton Woods institution halted its June disbursement to Kenya following the move

TUKO.co.ke journalist Wycliffe Musalia has over five years of experience in financial, business, and technology reporting and offers deep insights into Kenyan and global economic trends.

Kenya missed out on the International Monetary Fund (IMF) disbursement after President William Ruto withdrew the Finance Bill 2024, US Ambassador to Kenya Meg Whitman has said.

Whitman said the Bretton Woods institution was scheduled to release the funds on June 12, 2024, but halted following the events around the approval of the condemned bill.

Why IMF stopped loan disbursement to Kenya

She revealed that the international lender required revenue-raising measures and numbers to approve the disbursement.

"The IMF was going to approve a disbursement around 12 June, but when the Finance Bill was pulled down, they could no longer do that because they needed numbers they could put into their models," said Whitman.

The ambassador noted that the IMF has set up a meeting next week with Kenyan authorities over the disbursement.

Why IMF should release funds to Kenya

She urged the lender to disburse the money because Kenya is in a tight situation.

Whitman also recommended fiscal policies, including job creation, to help the country overcome the challenging economic situation.

"I believe it is important for that disbursement to be given out because Kenya faces a very difficult situation.

"Kenya can move beyond this by growing its way out, increasing GDP growth above 5% (2024) to 8%, ensuring there are good private and formal sector jobs, and creating a million jobs a year, which is a toll order," she said.

How much was IMF required to fund Kenya?

The IMF urged Ruto's government to remain committed to reforms under its programme as it warned of a shortfall in revenue collection.

The international lender was set to lend Kenya KSh 465 billion in its seventh review of the extended fund facility and extended credit facility arrangements.

It noted that the defunct was meant to widen the domestic tax base and collect more revenue to finance the 2024/2025 budget.

The IMF expressed its deep concern about the anti-Finance Bill 2024 protests and called for broad consultation with the public in policy formulation.

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