Kenya is set to start talks with the International Monetary Fund on a new lending facility.
In a statement, IMF mission chief Haimanot Teferra says Kenya has agreed to discontinue the ninth review of the current $3.6 billion loan program or Ksh 466.1 billion from the IMF.
An International Monetary Fund staff team has concluded an eight-day visit to Kenya, after holding discussions on economic and fiscal policies amid evolving challenges.
A statement by the IMF team lead, Haimanot Teferra, says Kenyan officials and the team from IMF have mutually agreed to discontinue the ninth review under the Extended Fund Facility and Extended Credit Facility programs.
The lending program, which began in April 2021, is set to expire next month. The IMF cited anti-tax hike protests in June 2024 as a key disruption to its implementation.
By October last year, $3.12 billion dollars had been disbursed under the facility. During a December 2024 visit, IMF Deputy Managing Director Nigel Clarke acknowledged the program’s role in enhancing Kenya’s resilience to economic and climate shocks.
However, he highlighted ongoing fiscal challenges, including strengthening Kenya’s financial framework and managing debt vulnerabilities.
He noted that the government faces a delicate balancing act meeting social and development needs while fulfilling debt obligations.
The IMF team has confirmed that it has received a formal request for a new financing program and will soon engage Kenya on the way forward.
By Caroline Njenga
