The International Monetary Fund (IMF) is closely observing the ongoing court case concerning the Finance Act, shortly after granting approval to the new law as a safeguard against debt default.
Read more: IMF Approves Disbursement of Kes 58.9 Billion (USD 415.4 Million) Loan to Kenya
Having completed the fifth review under Kenya’s extended Fund Facility and Extended Credit Facility, the IMF’s executive board authorized an immediate disbursement of approximately USD 415.4 million. The board acknowledged that the approval of the Financial Year 2023/24 Budget and the 2023 Finance Act are critical steps to support the country’s ongoing efforts to consolidate its finances, reduce debt vulnerabilities, and safeguard social and development expenditures.
Read more: IMF Demands an Overhaul of Kenya Power’s Board of Directors
Haimanot Teferra, the IMF Mission Chief for Kenya, stated during a media briefing in Nairobi on Wednesday that depending on the court’s ruling on the Finance Act, discussions with the authorities will be conducted to examine contingency plans. The IMF will consider potential adjustments if certain parts of the act are invalidated by the High Court or if the law’s implementation is entirely blocked.
Despite the suspension of the Finance Act, the Kenyan government remains confident in its constitutionality and viability. The IMF asserts that the new taxes introduced through the act are crucial for generating additional revenue and stimulating economic growth.
Email your news TIPS to editor@thesharpdaily.com
