By Ndung’u Wainaina
The International Monetary Fund (IMF) has directed Kenya to classify the KSh335 billion raised through future tax pledges as public debt.
This is a directive that directly threatens President William Ruto’s infrastructure financing strategy and his government’s push for a new IMF lending programme.
The IMF made this position clear in a report published on its website, saying Kenya has raised at least KSh335 billion (about USD2.6 billion), by securitising specific tax flows to bankroll major construction projects across the country.
This implies that the government has been using future tax collections as collateral to raise cash today, funding 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,” stated the IMF.
IMF reported 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,” stated the IMF.
_The writer is a Transitional Justice and Human Security Fellow who works at Africa Council on Human Security_
Similar Posts by Mt Kenya Times:
- Mt Kenya Times ePAPER May 18, 2026
- Diaspora Times Global May 16 – May 22, 2026
- Ruto celebrates Thika High 70 Years, announces major expansion of learning facilities
- Rach Harvey: Championing Kindness as a Force for Global Change
- Zimbabwe’s tensions mount: Moyo, Mnangagwa trade blows over constitutional changes