Kenya has canceled the ninth review of its loan program with the IMF and requested a new loan program following an IMF staff visit. Key discussions highlighted ongoing economic challenges, including debt sustainability and external financing pressures. Total financial commitments from the IMF to Kenya amount to SDR2.714 billion.
Kenya has officially canceled the ninth review of its loan program with the International Monetary Fund (IMF), initiating a request for a new loan program instead. The decision was made following discussions between the IMF staff, led by Haimanot Teferra, and Kenyan authorities during their visit to Nairobi from March 6 to March 14, 2025. The newly agreed understanding comes amidst challenges faced by the Kenyan economy, particularly regarding debt sustainability and financing pressures.
During the high-level IMF mission, members engaged with key figures such as President William Ruto and Central Bank Governor Kamau Thugge, addressing the country’s macroeconomic outlook. The IMF’s formal request for a new program indicates recognition of the fiscal issues facing Kenya and a commitment to finding solutions. Despite not publicly detailing the reasons for halting the current review, both parties have emphasized a collaborative outlook for the future.
Since the EFF and ECF programs were approved by the IMF Executive Board on April 2, 2021, Kenya has engaged in substantial financial arrangements, with total access reaching SDR2.714 billion (approximately KSh 465.76 billion), of which SDR2.343 billion has been approved for disbursement since that time. Additionally, Kenya has secured funds under the Resilience and Sustainability Facility, further expanding its financial assistance from the IMF.
In summary, Kenya’s decision to cancel the ninth review of its IMF loan program and request a new program highlights the economic challenges the nation faces. The collaborative endeavors with the IMF aim to address critical fiscal concerns and ensure sustainable economic development. With substantial financial commitments already made, a renewed partnership could be pivotal for Kenya’s economic trajectory going forward.
Original Source: www.asaaseradio.com
