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Nairobi, July 12, 2024 — The International Monetary Fund (IMF) has issued a call to action for President William Ruto’s administration in Kenya. In a statement released today, the IMF emphasized the need to mobilize additional revenues to meet the country’s critical needs.
Strengthening Tax Capacity
Julie Kozack, the spokesperson for the Bretton Woods institution, highlighted the importance of strengthening Kenya’s tax capacity. Not only does this enable financing for essential public spending, but it also plays a crucial role in facilitating growth and improving public service delivery.
“With a significant portion of revenues allocated to debt service, Kenya must enhance its revenue mobilization efforts,” stated Kozack.
Medium-Term Revenue Strategy
Kenya’s Medium-Term Revenue Strategy aims to widen the tax base and enhance tax equity. This comprehensive approach involves policy adjustments and administrative measures across all tax categories.
Efficient and Effective Resource Allocation
Kozack emphasized the efficient utilization of taxpayers’ resources. Transparency, accountability, and anti-corruption efforts are essential components of this strategy.
IMF’s Commitment
The IMF remains committed to supporting Kenya’s pursuit of inclusive and sustainable growth. Kozack assured that the Fund continually assesses developments and adjusts its programs based on evolving circumstances.
“Any potential modifications to the IMF program will be grounded in thorough analysis and constructive dialogue with Kenyan authorities,” disclosed the IMF spokesperson.
Public Consultation
Kozack stressed the importance of broad consultation to gain public support for these policies.
President Ruto’s administration faces the challenge of balancing fiscal responsibility with meeting the country’s needs. As Kenya navigates economic complexities, the IMF’s guidance becomes pivotal in ensuring a prosperous future.
