NAIROBI, Kenya — Kenya’s efforts to secure a new funding programme from the International Monetary Fund have hit a hurdle after the lender paused discussions pending the government’s response to a key governance and corruption diagnostics report.
The Bretton Woods institution confirmed that a draft of the report had already been shared with President William Ruto’s administration, but progress cannot continue until formal feedback is submitted.
Outgoing IMF African Department Director Abebe Aemro Selassie said the report is central to the approval process and must be reviewed by Kenyan authorities before it can be presented to the IMF board.
“The draft report has been shared by our team with authorities, and we are waiting for their comments on that before presenting it to our board and publishing it,” Selassie said.
The delay comes just days after the IMF confirmed that discussions were ongoing regarding a potential new programme aimed at supporting Kenya’s fiscal stability amid mounting economic pressures.
Selassie had earlier indicated that any agreement would depend on Kenya presenting a credible fiscal consolidation strategy, particularly as the country transitions toward greater reliance on international capital markets.
“Kenya is… shifting towards a market access country, and market access these days has become very volatile,” he noted, adding that authorities must carefully manage financing needs in a challenging global environment.
The setback comes at a time when Kenya faces rising debt obligations to the IMF. Treasury projections show the country is expected to repay about Sh47.9 billion to the lender in 2026, a sharp increase from Sh17.6 billion paid in 2025. Monthly repayments are estimated to average around Sh4 billion, placing additional strain on public finances.
The delay also coincides with a more cautious economic outlook. In its latest Regional Economic Outlook for Sub-Saharan Africa, the IMF projected that Kenya’s growth could slow in 2026, reflecting broader regional trends.
According to the report, Sub-Saharan Africa’s growth is expected to ease to 4.3 P.c in 2026, down from 4.5 P.c in 2025, with external shocks—including disruptions linked to ongoing Middle East tensions—affecting global supply chains and commodity prices.
Analysts say the stalled programme highlights the increasing importance of governance reforms in securing international financial support, as lenders tighten scrutiny on transparency, accountability, and fiscal discipline.
