Kenya is now looking for a new deal with the International Monetary Fund (IMF) as the current Sh301 billion programme is set to end in April.
This move comes after years of strict loan conditions that have led to higher taxes and a growing public debt, putting a heavy burden on ordinary citizens.
The government has relied on IMF support to stabilize the economy, but the conditions attached to these loans have made life more difficult for Kenyans.
The IMF programme that is ending was meant to help Kenya manage its debt, improve tax collection, and implement economic reforms.
However, instead of bringing relief, it has led to increased taxation, making basic goods and services more expensive. Many businesses have struggled under the weight of high taxes, while households have been forced to dig deeper into their pockets to afford essentials.
The cost of fuel, electricity, and food has gone up due to policies pushed by the IMF, leading to widespread frustration among the public.
Despite the government defending these measures as necessary for economic recovery, the reality on the ground tells a different story.
Unemployment remains high, and many businesses are shutting down due to high operational costs.
The increased taxes, including the controversial housing levy and new VAT measures, have not translated into better services for citizens.
Instead, Kenyans are paying more while the quality of public services continues to decline.
Roads are in poor condition, hospitals lack medicine, and the education sector is struggling with inadequate funding.
The search for a new IMF deal raises concerns that even tougher conditions will be imposed. The government may be forced to introduce more taxes, cut public spending, or even privatize key state assets to qualify for fresh loans.
This could worsen the economic situation, especially for low-income earners who are already struggling to make ends meet.
The fear among many Kenyans is that another IMF deal will only lead to more suffering instead of real economic growth.
Critics argue that the government should focus on reducing unnecessary spending instead of taking more loans.
Corruption remains a major issue, with billions of shillings being lost through fraudulent deals while the ordinary citizen is forced to bear the cost of economic reforms.
There are also questions about how previous loans have been used, as many projects remain incomplete or have failed to deliver expected benefits.
As Kenya negotiates for a new IMF deal, the biggest concern is whether the government will listen to the struggles of its people.
With the current debt levels already high, another loan could push the country further into a financial crisis. Many Kenyans feel that instead of borrowing more, the government should focus on improving revenue collection, reducing wastage, and ensuring that funds are used properly.
The coming months will be crucial in determining the economic direction of the country, but for now, the fear of more taxes and tougher conditions remains a major worry for the public.
