• The International Monetary Fund (IMF) is one of the leading lenders to Kenya and other third-world countries.
• The institution, while loaning the country, imposed several conditions on Kenya.
Image: Handout
Narok Senator Ledama Olekina has said it is time the country relooks into the agreements with international monetary institutions such as the World bank.
Ledama on Saturday said developing countries tend to overtax their citizens to please the West and the institutions.
"Corrupt and developing countries like Kenya over tax its poor citizens to please the West and especially IMF and World Bank. We must renegotiate the Bretton Woods Agreement," he opined.
The International Monetary Fund (IMF) is one of the leading lenders to Kenya and other third-world countries.
On December 10, 1963, Kenya adopted an Act of Parliament to provide for acceptance of the Agreements for the IMF and the International Bank for Reconstruction and Development and to provide for matters related thereto.
The Bretton Woods system has unified rules and systems that guide international currency exchange rates.
The IMF, while loaning the country, imposed several conditions on Kenya.
They include structural and institutional reforms that many fear could lead to the mass layoff of government employees across state agencies.
In 2018, then President Uhuru Kenyatta was forced to cut VAT on fuel to eight percent after the introduction of a 16 percent levy prompted protests from motorists and business lobbies.
The tax was originally included in a law passed in 2013 after a push by IMF but was postponed several times following complaints of its impact.
In 2022, the monetary institution piled more pressure on Kenya to push VAT on petroleum products to 16 percent but Uhuru's administration stood its ground, fearing a national backlash.
In November last year, Senate commenced scrutiny of the tough austerity measures imposed by the IMF for loans.
Senate Speaker Amason Kingi has allowed the Senate’s Finance and Budget committee to inquire into the measures that the legislators fear could escalate poverty in the country.