Kenya’s president warns of huge consequences after his effort to address an $80 billion debt fails

NAIROBI, Kenya — The ballooning debt in East Africa’s economic hub of Kenya is expected to grow even more after deadly protests forced the rejection of a finance bill that President William Ruto said was needed to raise revenue. Last week, days after announcing he would not sign the finance bill he once championed, Ruto said he had worked hard “to pull Kenya out of a debt trap” and that huge consequences lie ahead. He suggested making access to low-interest credit easier for businesses in key sectors like tourism and agriculture, saying small businesses hold the key to Kenya’s economic growth as they tend to absorb many employees. Some protesters had posters with messages such as “IMF stop colonialism.” In a statement late last month, the IMF said it was monitoring the situation in Kenya, adding that its main goal was to help it “overcome the difficult economic challenges it faces and improve its economic prospects and the well-being of its people.” The IMF needs to do more for Kenya beyond focusing on debt sustainability and be a “strong development partner,” Gichinga said.