Misaligned Financing and Corruption are Barriers to Breaking the Debt Trap.
FEBRUARY 2025
In the summer of 2024, thousands of Kenyans took to the streets as part of a protest movement against proposed policies to implement double-digit tax hikes on everyday items such as bread and cooking oil and slash critical public services. The policies were introduced to meet fiscal targets in Kenya’s loan agreements with the International Monetary Fund (IMF). These measures came at a time when inflation was already rising in the East African country, with youth unemployment reaching 67 percent and poverty rates hovering close to 40 percent.
The following brief summarizes Kenya’s debt crisis, the role of weak governance and corruption, and several top reforms needed to assure the accountable use of financing moving forward.
