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IMF intervenes in Kenya teacher's strike


Teachers in Kenya found out they were fighting a bigger force than the government after a 15 day strike last October. The Financial Times (13/10/98) revealed that the IMF would not approve an urgently needed new loan facility if the government acceded to the teachers demands.

Teachers in Kenya currently receive an average basic salary of US $150 per month. The Kenyan National Union of Teachers argued that most teachers this is not enough to live on. Last July they negotiated an agreement with the government for a 200% increase over a five-year period. The strikes, supported by 70% of the population, were in response to the government defaulting on that agreement.

Kenya is heavily indebted, and 25% of government revenue goes to service debt, compared to 2.7% of GNP on health and 6.8% on education. Over half of the debt is owed to multilateral institutions, including the World Bank and IMF, and last year Kenya paid US $208 million in debt service to these institutions. A reduction in Kenya's debt burden would release funds that could be used for social spending including teacher's salaries. However the International Financial Institutions do not consider Kenya eligible for debt relief.