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Fresh test for Ruto as IMF urges new tax policies to unlock loans

The National Treasury and Economic Planning Cabinet Secretary John Mbadi. [File, Standard]

The newly reorganised Ruto government faces a fresh fiscal and political test after the International Monetary Fund (IMF) called on the Kenya Kwanza administration to develop new tax policies to unlock billions of dollars in loans.

The fresh call comes in the wake of recent turmoil, including widespread protests led by Gen Z activists against IMF-backed tax measures that resulted in dozens being killed by police.

An IMF high level team from Washington led by Haimanot Teferra concluded a key visit to Nairobi from September 11 to 16, and emphasised the urgent need for new policies by the government amid the country’s evolving economic and fiscal challenges. Ms Teferra in a statement issued following the visit highlighted the importance of the discussions.

“The Kenyan authorities and IMF staff had productive discussions focused on crafting policies and reforms necessary to navigate the evolving economic landscape,” she said.

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