How IMF Loans Make Some Kenyans Poorer

Over a billion people live in the 38 countries with where IMF programs have been approved since the start of the Covid-19 pandemic. Human Rights Watch research has found that more than half of these programs reduce or remove government-funded fuel or electricity subsidies, which keep prices artificially low to protect consumers, without adequate compensatory measures that help people stay financially afloat.
True, phasing out fossil fuels is crucial for avoiding the worst impacts of climate change and transitioning to renewable energy sources. But it is critical that removing such subsidies be undertaken together with measures designed to protect people with lower incomes, such as adequate investment in social protection programs and renewable energy.