Kenya has canceled the 9th review of its loan program with the IMF following discussions regarding its economic outlook. A formal request for a new program has been made. The IMF’s commitment to Kenya, established through previous arrangements, remains substantial.
Kenya has officially canceled the 9th review of its loan program with the International Monetary Fund (IMF). This decision was reached during a visit from an IMF staff team, led by Haimanot Teferra, which took place in Nairobi from March 6 to March 14, 2025. The mission focused on recent economic developments in Kenya and the nation’s overall macroeconomic outlook.
At the conclusion of the visit, both Kenya and the IMF decided that the ninth review under the existing Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs would not proceed. Teferra stated that the IMF has received a request for a new program from Kenya, indicating a collaborative approach moving forward.
During the mission, high-level meetings were held with key Kenyan officials, including President William Ruto, Cabinet Secretary for National Treasury Mbadi Ng’ongo, and Central Bank of Kenya Governor Kamau Thugge. The discussions were centered around Kenya’s fiscal issues, such as debt sustainability and external financing pressures.
Under the EFF and ECF programs approved on April 2, 2021, Kenya gained access to approximately SDR 1.655 billion (around US$2.34 billion at that time). Since then, the total financial commitment from the IMF to Kenya has reached SDR 2.714 billion (approximately KSh 465.76 billion) with significant disbursements made from 2021 onward, including recent approvals under the Resilience and Sustainability Facility.
In summary, Kenya’s decision to cancel the 9th review of its loan program with the IMF stems from ongoing economic challenges. The collaborative discussions with the IMF have led to a formal request for a new program, as key officials focus on addressing other fiscal concerns. The commitment from the IMF to support Kenya remains robust, with significant financial arrangements already in place.
Original Source: www.asaaseradio.com
