The IMF authorizes a $606 million loan to Kenya.

Following widespread protests that resulted in the abandonment of financial reforms, the IMF reported that it has cleared $606 million in lending to Kenya, which is struggling to increase taxes and pay off debts.

In the unstable East African region, Kenya is regarded as an economic shining light.

However, interest payments are taking up two-thirds of its yearly earnings, which is more than its health and education expenses, and it is struggling with about $80 billion in external and domestic debt.

Protests in June over a financial bill that sought to raise almost $2 billion through taxes in various areas caused a delay in an International Monetary Fund examination.

Following years of rising inflation and corruption scandals, the bill caused unrest that resulted in the deaths of over 60 people. President William Ruto ultimately decided to cancel it.

Gita Gopinath, the first deputy managing director of the IMF, said in a statement late Wednesday that “despite a difficult socio-economic environment, Kenya’s economy remains resilient, with growth above the regional average, inflation decelerating, and external inflows supporting the shilling and a buildup of external buffers.”

However, she said that exports and revenue had underperformed, particularly following the cancellation of the finance bill.

“There is a challenging adjustment path ahead,” Gopinath stated. “Clearly communicating the necessity and benefits of the reforms is paramount.”

She stated that additional assistance was required for Kenyan banks in order to address concerns of corruption and governance.

Kenya asked for an IMF governance assessment earlier this month to look at how corruption and other problems were affecting its finances. Western creditors advocated this as a means of repairing Kenya’s damaged reputation following scandals and the violent crackdown on protestors.