The International Monetary Fund (IMF) has cautioned Kenya against drastic budget cuts in sectors such as health, education, and the Kenya Revenue Authority (KRA), warning that such reductions could hamper essential services and hinder economic growth. Given these added pressures, the IMF sees major budget cuts as difficult to implement. Instead, the IMF recommends that Kenya focus on new revenue-generating measures as a better way to achieve fiscal stability. The warnings come as Kenya seeks to reintroduce some abandoned tax measures from the Finance Bill, 2024, through the proposed Tax Laws (Amendment) Bill, 2024. Still, the IMF considers these tax measures insufficient to fully address spending pressures, predicting the need for a second supplementary budget for 2024/25, expected by January 2025.

Source: Daily Nation November 05, 2024 06:44 UTC