Kenya among countries facing shrinking fiscal space, report finds
The report, Still Cooking With a Failed Recipe, by ActionAid, Education International and the Tax and Education Alliance argues that despite the IMF's growing emphasis on protecting social spending and promoting inclusive growth, its country-level policy advice continues to prior..
✨ Key Highlights
A new report indicates that Kenya is among developing economies facing shrinking fiscal space due to rising debt and IMF-backed reforms, limiting its ability to fund growth and public services.
- Kenya's external debt stands at $39.7 billion, with debt repayments consuming 28.7% of national revenue.
- The report, "Still Cooking With a Failed Recipe," is by ActionAid, Education International, and the Tax and Education Alliance.
- Despite the IMF's rhetoric on protecting social spending, the report argues that its policy advice prioritizes fiscal consolidation and debt repayment, leaving little room for essential services like health and education.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
World Bank Approves Sh161.8 Billion Loan to Kenya After Demanding Reforms - July 2026
The World Bank has approved a Sh161.8 billion ($1.25 billion) financing package for Kenya, contingent upon the nation implementing a series of critical reforms. A separate report indicates that Kenya is among developing economies facing shrinking fiscal space due to rising debt and IMF-backed reforms, limiting its ability to fund growth and public services. Another report claims the International Monetary Fund prioritizes debt repayment and austerity over public spending, despite its stated commitment to inclusive growth, particularly affecting countries like Kenya. Deputy President Kithure Kindiki has pledged that proceeds from the sale of government assets will be strictly allocated to infrastructure development, not recurrent expenditure. President William Ruto and Deputy President Kithure Kindiki have defended the government's decision to sell stakes in Safaricom and Kenya Pipeline Company, with proceeds earmarked for financing major infrastructure projects.
