KENYA: FISCAL AUSTERITY AGENDA DRIVES POLITICAL CHANGES AND CORRUPTION PROBES
Tue, 30 May 2023
Kenya’s government continues to secure multilateral and development finance commitments to fund its budget and support debt service payments, which should avoid a default scenario at least in the one-year outlook. To push ahead with its IMF-mandated austerity agenda, the administration is reshuffling the central bank, purging the revenue authority, and may perhaps agree a political deal with the opposition to avoid a repeat of unrest in cities. However, Kenya’s relations with China continue to deteriorate even while negotiations for the restructuring of Chinese loans fail to make headway. The need for debt restructuring, privatisations, and revenue expansion will increase as nascent oil sector prospects continue to disappoint.
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