Unrest in Kenya Challenges IMF Targets and Borrowing Costs

Violent unrest that compelled Kenya’s president to withdraw support for a finance bill has cast uncertainty over the country’s ability to meet International Monetary Fund targets and could increase borrowing costs, according to investors and analysts. The bill, which proposed taxes on bread, vegetable oil, sugar, mobile-money transfers, and certain imports, aimed to generate US$2.68 billion, equivalent to 3% of GDP, in additional revenue, as noted by Morgan Stanley’s, Neville Z. Mandimika.