NAIROBI, Kenya- Kenya has taken a significant step towards securing fresh financial support from the International Monetary Fund (IMF), with formal talks set to begin on a new lending arrangement.
This development comes after Kenyan authorities and the IMF agreed to halt the ongoing review of the current loan program, marking a shift in the country’s engagement with the global lender.
In a statement issued Monday, the IMF confirmed it had received a formal request from Nairobi for a new program, signalling the government’s intent to reset its economic partnership with the institution.
The move follows a visit to Kenya by an IMF delegation led by Mission Chief Haimanot Teferra, which took place from March 6 to 14.
“The IMF has received a formal request for a new program from the Kenyan authorities and will engage with them going forward,” Teferra noted, adding that discussions during the visit centered on Kenya’s economic outlook and recent financial developments.
The decision not to proceed with the ninth review under the existing Extended Fund Facility (EFF) and Extended Credit Facility (ECF) suggests that both parties see more value in charting a new course, rather than continuing with the current program which has been in place since 2021.
This pivot comes at a time when Kenya is grappling with tight public finances, a weakening shilling, and mounting debt obligations.
The government is seeking ways to stabilise the economy while maintaining investor confidence and access to international credit markets.
Looking ahead, the IMF expects Kenya’s economy to grow by 5 percent in 2025.
This is slightly below the Kenyan Treasury’s own forecast of 5.5 percent, as officials bet on a rebound driven by agricultural recovery, infrastructure investments, and a more stable macroeconomic environment.
