This archive report was first published on 19 November 2019.
Kenya's President Uhuru Kenyatta has spent significant political capital to prevent the repeal of the interest rate cap law, but the International Monetary Fund (IMF) is set to move the goalposts and demand budgetary reforms instead.
According to sources, the IMF will insist on allowing markets to determine prices, labor, and taxation, which has led to the de-industrialization of much of Africa and the developing world over the past 30 years.
Kenya's efforts to reduce budget deficits may be stymied by the IMF's demands, which could have short-term consequences for the country's economy.
However, experts argue that Kenya should retrace its steps and adopt policies that grow the economy, rather than relying on the IMF's pro-cyclical policies that have held much of Africa captive.
By embracing policies that promote economic growth, Kenya can demonstrate the bankruptcy of the IMF's approach and break free from the cycle of poverty that has plagued the continent for decades.
As the president embarks on trade talks with Saudi Arabia, he should take a cue from leaders who have turned their countries' fortunes around in one generation, such as those of Singapore and South Korea.
