Kenya is negotiating a new program with the International Monetary Fund (IMF) that includes more attainable targets, a senior government official announced, following widespread protests over recent tax hikes.
The East African nation has faced significant public backlash in recent weeks, with demonstrations turning deadly as citizens voiced their opposition to increased taxation and rising living costs. The protests have prompted the Kenyan government to reassess its fiscal strategy.
“We are engaging with the IMF to put in place a program that reflects our current realities and addresses public concerns,” the official stated. The government is reportedly seeking to strike a balance between meeting its fiscal obligations and responding to domestic socio-economic pressures.
Kenya’s economic challenges have been compounded by global trade tensions, including those linked to former U.S. President Donald Trump’s trade policies, which have had a knock-on effect on developing economies.
The revised approach to the IMF deal is expected to focus on sustainable debt management and targeted reforms aimed at promoting economic stability without placing additional strain on the public.
The government has not disclosed specific terms of the new IMF program but emphasized its commitment to transparency and public dialogue throughout the negotiation process.