Kenya has cancelled the 9th review of its IMF loan program, requesting a new financial arrangement instead. This decision follows discussions between IMF staff and Kenyan authorities, focusing on the country’s economic outlook and sustainability challenges. The shift reflects ongoing collaboration and proactive strategies to address fiscal concerns.
Kenya has recently suspended the 9th review of its loan program with the International Monetary Fund (IMF), opting to request a new program instead. A delegation from the IMF, under the leadership of Haimanot Teferra, was in Nairobi from 6 to 14 March 2025 to engage with local authorities regarding Kenya’s economic situation.
During this visit, discussions centered on assessing the country’s economic progress and addressing challenges related to fiscal sustainability and external financing. Following these talks, it was mutually decided that the ongoing Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs would no longer include the ninth review.
The IMF’s engagement included high-level discussions with Kenyan leaders such as President William Ruto and various key officials. While the specific reasons for canceling the ninth review were not detailed, the decision reflects a collaborative strategy between the IMF and Kenya to formulate a new financial path moving forward.
Kenya’s current agreements with the IMF date back to April 2021, when programs were established that allow access to a total funding of SDR 1.655 billion (approximately USD 2.34 billion). To date, the IMF has disbursed SDR 2.343 billion (about KSh 402.54 billion) under these arrangements.
In summary, Kenya has cancelled the 9th review of its loan arrangement with the IMF, marking a significant shift towards developing a new assistance program amid ongoing economic concerns. The collaborative discussions with IMF officials signal a proactive approach to address fiscal challenges, setting the stage for future engagements aimed at enhancing financial stability in the country.
Original Source: www.asaaseradio.com
