IMF Outlines Strategy for Ensuring Tax Adjustments After Ruto Withdraws Finance Bill

President William Ruto during a meeting with IMF officials and officials from the Kenyan national treasury at State House in Nairobi on November 13, 2023
President William Ruto during a meeting with IMF officials and officials from the Kenyan national treasury at State House in Nairobi on November 13, 2023
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The International Monetary Fund on Friday, 12 July, called on President William Ruto's administration to mobilize more revenues to meet the country's needs.

In a statement, the Bretton Woods institution's spokesperson, Julie Kozack said strengthening the country's tax capacity was essential for Kenya's development.

According to Kozack, strengthening tax capacity was not only necessary to finance critical public spending but also to enable the state to fulfil its role in facilitating growth and improving public service delivery. 

"With a significant share of revenues going toward debt service, Kenya needs to mobilize more revenues to meet the country's needs," read part of IMF statement.

International Monetary Fund office.
The International Monetary Fund (IMF) offices in Washington, US.
Photo
IMF

Kozack stated that Kenya's Medium-Term Revenue Strategy aimed to widen the tax base and improve tax equity. 

The Medium-Term Revenue Strategy involves comprehensive tax policy and administrative measures across all tax categories.

The IMF's spokesperson clarified that it was important to ensure that taxpayers' resources were spent efficiently and effectively and in priority areas. 

She also stated that Ruto's administration also needed to enhance transparency, accountability, and anti-corruption efforts.

"The IMF remains committed to supporting Kenya's efforts to achieve inclusive and sustainable growth and to improve the living standards of its citizens," Kozack stated.

According to Kozack, at every program review, the Fund assesses developments and makes adjustments considering the evolving circumstances.

"Any potential modifications to the IMF program will be based on thorough analysis and constructive dialogue with the Kenyan authorities," the Fund's Spokesperson disclosed.

"It is also important that these policies go through a process of broad consultation so they can gain public support," she added.

Ruto
President William Ruto (left) during a round-table with President of France Emmanuel Macron, International Monetary Fund Managing Director Kristalina Georgieva and the President of the World Bank Group Ajay Banga in Paris on June 22, 2023.
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