IMF Urges Kenya to Treat Securitized Cash as Debt Ahead of Talks

The International Monetary Fund said Kenya should treat future tax income used to fund major infrastructure projects as debt, a move that could upend President William Ruto’s spending plans.

Authorities in the East African economy rated at high risk of debt distress have raised at least 335 billion shillings ($2.6 billion) by leveraging future tax flows, according to the president. It’s securitized a sports levy to finance a new stadium, a fuel tax to pay for road construction and import duty for a new railway. A passenger tax is earmarked for an upgrade for Kenya’s biggest airport.