The International Monetary Fund (IMF) is back in Nairobi, holding talks with government officials for yet another round of loans. This visit comes at a time when ordinary Kenyans are grappling with heavy taxes, shrinking payslips, and the broken promises of the Kenya Kwanza government’s Bottom Up Economic model. Instead of relief, Kenyans now face the grim reality of more debt, higher repayments, and economic policies dictated from Washington rather than Nairobi. The IMF team, led by Mission Chief Haimanot Teferra, began talks on September 25 and will remain in the country until October 9. The discussions will determine the framework for a new financing agreement, replacing the earlier US$3.6 billion (Ksh465.2 billion) package that was terminated prematurely in March. While IMF officials insist that the programme is meant to “safeguard debt sustainability and promote inclusive growth,” many Kenyans see it as a trap that only deepens the cycle of borrowing. IMF Loans Threaten to Deepen Kenya’s Debt Burden Kenya’s debt currently stands above Ksh11 trillion, a level that leaves little room for more borrowing without suffocating the economy. Despite this, the government continues to pursue IMF loans, arguing that the money is critical to stabilize the shilling, cover budget deficits, and pay for infrastructure.
However, every new IMF loan comes with strings attached. Previous agreements forced Kenya to cut subsidies on fuel and food, triggering sharp increases in the cost of living. Civil servants have complained that their payslips are shrinking due to new tax measures, while the cost of basic items has soared beyond reach.
The IMF itself has openly pushed Kenya to tighten tax collection, cut public spending, and reform state-owned enterprises. These conditions might look good on paper but on the ground they translate into higher PAYE, VAT, and levies that eat into the incomes of millions of workers.
Instead of spurring growth, the burden of debt and taxes is stifling the very people who fuel the economy.
The irony is clear. Kenya Kwanza promised to uplift hustlers through the Bottom Up Economic model, pledging cheap credit, affordable farm inputs, and job creation. But instead of implementing these pledges, the government has bowed to IMF demands, choosing debt repayment over economic empowerment. IMF Loans Versus the Reality of Payslips For many Kenyans, the issue is not the technical language of debt sustainability but the simple question of survival. A teacher earning Ksh35,000 a month now takes home less than Ksh25,000 after deductions for PAYE, NHIF, NSSF, and new levies. A police officer’s payslip shows similar cuts. Even private-sector workers are struggling, with businesses passing the weight of new taxes onto employees.
The IMF conditions behind these taxes are invisible but powerful. When subsidies were removed from fuel and maize flour, the IMF praised the move as “necessary reforms.” Yet for ordinary Kenyans, it meant longer walks, skipped meals, and mounting household debt.
The government argues that these sacrifices are temporary and that future growth will offset the pain. But Kenyans have heard this line before. Decades of IMF programmes in Africa show that while loans bring temporary liquidity, they also trap economies in cycles of austerity, where governments serve creditors before citizens. Bottom Up Model Versus IMF Demands President William Ruto rode to power promising a Bottom Up Economic model. He pledged to put money into the hands of hustlers, strengthen small businesses, and grow the economy from the grassroots. But one year later, those promises have collided with the hard wall of IMF loan conditions.
Cheap credit for mama mboga has not materialized. Farmers are still paying high prices for fertilizer. Youth unemployment remains high, while the government diverts resources to debt repayment. Instead of easing the burden, the IMF’s prescriptions have widened inequality and weakened the president’s political capital.
The diaspora bond floated by Prime Cabinet Secretary Musalia Mudavadi is another attempt to raise funds. But even if successful, it only adds another layer of debt. Experts warn that these bonds, coupled with IMF loans, will mortgage the country’s future revenues to foreign creditors.
In the end, Kenyans are left with the bitter truth: their taxes and payslips will continue funding debt repayments, not the Bottom Up promises that brought the current administration into power.