IMF questions Ruto’s govt over Ksh335B fund amid debt concerns
By Aloys Michael, April 15, 2026The International Monetary Fund (IMF) has instructed Kenya to classify the Ksh335 billion raised through future tax-backed financing as part of its public debt.
This move could significantly impact President William Ruto’s infrastructure funding model and ongoing efforts to secure a new IMF programme.
According to a report published on Tuesday, April 14, 2026, on the IMF’s website, the government has mobilised approximately Ksh335 billion by securitising selected tax revenues to support large-scale development projects nationwide.
This implies that the government has been using future tax collections as collateral to raise cash today to fund roads, railways, stadiums, and airports, without officially adding those obligations to the national debt register.
The IMF pointed out key infrastructure projects under the Ruto Presidency, stating categorically that the funds used to steer these mega projects ought to be regarded as debt liabilities on the international scale.
“Such income “should be recognised as a debt liability under the international statistical standards,” the international lender said.
IMF reports that the sports levy has been pledged to finance a new national stadium, Talanta Stadium, while a fuel tax is used to fund road construction- Mau-Rironi Summit Dual Carriage.
At the same time, an import duty is funding a brand-new railway line, the Standard Gauge Railway (SGR) extension from Naivasha to Malaba, expected to ease cargo movement, and a passenger tax has also been earmarked for a major upgrade at Jomo Kenyatta International Airport (JKIA).
The fund went further, laying out exactly how the reclassification should work, giving Kenya two specific options for how securitisation proceeds must be recorded and reported going forward, stressing that the proceeds must be treated as a loan.
“Securitisation of future revenue should either be treated as a loan to the securitisation unit or as direct borrowing of the government,” the IMF said.
Kenya-IMF deal
This leaves little wiggle room for the National Treasury, according to experts, because classifying securitised revenue as debt increases Kenya’s official borrowing levels, tightens debt thresholds, reduces off-budget financing flexibility, and subjects all such deals to stricter IMF and market scrutiny constraints.
Treasury Secretary John Mbadi has in the past been against such measures from the IMF, saying such financing is off the government’s balance sheet and should not be designated as debt.
Kenya and the IMF convened a high-level meeting on Monday, April 13, 2026, in Washington, D.C., bringing together IMF Managing Director Kristalina Georgieva and senior Kenyan officials, including Mbadi, Principal Secretary Chris Kiptoo, and Central Bank Governor Kamau Thugge.
The talks centred on Kenya’s economic outlook, inflation trends, financial stability, and key reform priorities, while also addressing the effects of global geopolitical tensions, particularly the Middle East conflict.
The IMF reaffirmed its commitment to supporting Kenya in mitigating the economic fallout of the ongoing crisis and strengthening the country’s financial resilience.