IMF drops tough stance

NAIROBI — Kenyan o cials resisted the push by the International Monetary Fund (IMF) to scrap the fuel subsidy programme that has seen the government spend Sh49.164 billion to stabilise the petroleum prices. Treasury cabinet secretary Ukur Yatani said they reached an agreement with the IMF to sustain the programme to cushion the economy from a sharp rise in the cost of living as a result of a global spike in oil prices. Kenya is on a 38-month IMF programme, which has seen the multilateral lender give the country Sh270.2 billion ($2.34 billion) in loans in exchange for a reform package that includes eliminating fuel and tax subsidies to improve revenue collection. IMF sta and the Kenyan authorities reached a sta -level agreement on economic policies to conclude the third review of the programme late last month.— Business Daily