The International Monetary Fund (IMF) has urged President William Ruto’s administration to boost revenue generation to meet Kenya’s financial needs.
On July 12, Julie Kozack, the IMF spokesperson, emphasized the importance of strengthening Kenya’s tax capacity to support the nation’s development. Kozack highlighted that enhancing tax capacity is crucial not only for financing essential public spending but also for fostering growth and improving public services.
“With a significant share of revenues directed towards debt service, Kenya needs to mobilize more revenues to meet its needs,” the IMF stated.
Kozack pointed out that Kenya’s Medium-Term Revenue Strategy aims to broaden the tax base and ensure tax equity. This strategy includes comprehensive tax policy and administrative reforms across all tax categories. The IMF stressed the necessity of efficient and effective use of taxpayers’ money, particularly in priority areas.
Additionally, Kozack urged President Ruto’s administration to boost transparency, accountability, and anti-corruption measures.
“The IMF remains dedicated to supporting Kenya’s efforts towards inclusive and sustainable growth, as well as improving the living standards of its citizens,” Kozack asserted.
Kozack further explained that during each program review, the IMF evaluates developments and makes necessary adjustments based on the evolving circumstances. “Any potential modifications to the IMF program will be based on a thorough analysis and constructive dialogue with Kenyan authorities,” the spokesperson added.
Finally, Kozack stressed the importance of public consultation in policy-making to ensure broad support for the initiatives.