IMF staff to visit Kenya for talks on potential support programme
International Monetary Fund (IMF) staff will visit Kenya from September 25 to October 9 to begin discussions on a potential IMF-backed programme, the Fund confirmed on Wednesday.
Kenya’s previous $3.6 billion programme with the IMF expired in April. Officials, including Central Bank Governor Kamau Thugge, have expressed interest in negotiating a new programme that would include a lending component, News.Az reports, citing Reuters.
Haimanot Teferra, the IMF’s mission chief for Kenya, said:
"An IMF staff team will begin initial discussions in the coming days on a possible Fund-supported programme."
Following the announcement, Kenya’s dollar bonds rose, with the 2048 maturity gaining 0.7 cents to bid at 89.88 cents on the dollar, according to Tradeweb data. Financial analysts note that a new IMF deal is crucial for anchoring the country’s external debt repayments.
In March, Kenya and the IMF had to abandon the final review of the last programme. Consequently, the government did not receive the final tranche of the Extended Fund Facility and Extended Credit Facility, worth $800 million.
The previous programme faced challenges as Kenya struggled to control its fiscal deficit and boost revenue collection, particularly after nationwide protests forced the government to cancel planned tax hikes.
Teferra emphasized that the IMF remains committed to supporting Kenya in maintaining macroeconomic stability, safeguarding debt sustainability, and strengthening governance.
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