Posted 1/24/2024, 3:30:00 AM
IMF Questions Kenya's Choice to Resume Fuel Subsidies Despite Budget Constraints
- IMF criticizes Kenya's reintroduction of fuel subsidies despite lack of funds to pay oil marketers
- Subsidies distort the budget and Kenya owes oil marketers at least Sh9 billion from last year
- President Ruto had vowed not to subsidize fuel prices per IMF loan conditions
- IMF unhappy subsidy reapplied on Oct 15 and Nov 15, calling it "limited but unbudgeted"
- Removal of subsidy in May 2022 sent pump prices to record highs over Sh182 per liter