Here’s the reason why Kenya has come under IMF scrutiny

The International Monetary Fund has expressed discontent with Kenya’s plan to re-introduce fuel subsidies. This global lender disclosed its concerns about the viability of the scheme, noting that Kenya may not that there is a lack of fund to pay oil marketers. The bank also cited an outstanding bill in the sector.

As reported by The East African, a publication focused on East African affairs, The International Monetary Fund has pushed back against Kenya’s plan to re-instate the fuel subsidy program.

The IMF noted that Kenya may not be able to pay oil marketers, leading to budget distortion. Additionally, the bank noted that Kenya’s treasury has not yet given the companies the minimum Ksh9 billion ($55.6 million) that they are due from the previous year.

The plan to reintroduce fuel subsidies goes against President William Ruto’s initial sentiments on the program. The president had spoken about the absurdity of fuel subsidies, in line with the conditions to access billions of shillings in loans from the Bretton Woods institution, and promised to eliminate the program.

Source: business insider