Report blames IMF for economic mess, warns of budget cuts

The International Monetary Fund (IMF) is to blame for some of the biggest scandals seen under the Kenya Kwanza government.

The Africa Centre for Open Governance (Africog) has accused the IMF of enabling the government's mismanagement by its rosy description of Kenya's economy despite indicators pointing to a poor performance.

Africog and the Okoa Uchumi coalition trace IMF’s reports 10 years back, portraying Kenya as a successful economy despite growing concerns and evidence on mismanagement of debts.

“It reads as fantasy or collusion with those mismanaging the economy,” says the report titled "Stealing the Future: Reframing Kenya’s Crisis Through a People-Centered Debt Narrative".

The report, unveiled about five weeks to the financial year 2025/2026, cautions that unless the government adopts a ="https://www.standardmedia.co.ke/business/business/article/2001496985/imf-world-bank-at-odds-on-tax-kenya-policies">people-centered approach< in resolving joblessness and confronts rampant corruption, its revenue mobilization efforts may yet again be rejected by Kenyans.

“Privatisation of public assets is corruption. It is naïve to assume that law and policy cannot be subverted,” said Africog Executive Director Gladwell Otieno, blaming IMF’s approvals for the Adani deals fiasco.

The Kenya Kwanza administration has been pushing several public-private partnerships, including the bid to give the Adani Group concessions over the JKIA and parts of the national electricity grid.

It has also given out the Bomas of Kenya to a Turkish company, which is already putting up a complex.

The concessioning of the management of the health information system underlying the Social Health Insurance Fund to a Dubai-based syndicate has also been identified as an aftermath of the IMF’s approved PPP policy.

“IMF has played a key role in supporting the GoK as it ran the economy to the ground, and must also ="https://www.standardmedia.co.ke/business/business/article/2001514031/kenya-to-seek-a-new-imf-agreement">bear responsibility<," said Diana Gichengo, the executive director for the Institute for Social Accountability.

The forum also cautioned that revenues would continue to fall below target, noting that exaggerated projections distort approval of expenditure by National Assembly.

The report raises concerns over proposed cuts in the budget estimates while increasing allocations for the presidency.

The proposed budget awaiting approval for the financial 2025/2026 stands at Sh4.23 trillion. Some of the proposed cuts are Sh12.73 billion from Basic Education Department, Sh4 billion from Irrigation, Sh7.1 billion from Crop Development and Sh3.2 billion from Children Services.

“We must reject budgets like the ones that have been projected here, where we are ="https://www.standardmedia.co.ke/business/financial-standard/article/2001514017/kenya-pulls-plug-on-sh301b-imf-deal-amid-hunt-for-new-bailout">slashing budgets for education<, social protection and children's services. Who takes away anything from children?” said Gichengo.

Speakers also called out President William Ruto for his lack of faith on his Cabinet, hence the appointment of many advisors.