Nairobi: An International Monetary Fund (IMF) delegation is set to visit Kenya from September 25 to October 9 to initiate discussions on a potential new IMF-supported programme, the Fund confirmed on Wednesday. This visit comes in the wake of the expiration of Kenya’s previous $3.6 billion IMF programme in April 2025, leaving the East African nation seeking fresh support to stabilize its economy and manage external debt obligations.
The delegation, led by IMF mission chief for Kenya, Haimanot Teferra, will engage with government officials to explore a programme that could include a lending component. “An IMF staff team will begin initial discussions in the coming days on a possible Fund-supported programme,” Teferra said, underscoring the Fund’s commitment to supporting Kenya’s macroeconomic stability, debt sustainability, and governance reforms.
Kenya’s economic landscape has faced notable challenges in recent months. The government and the IMF had abandoned the final review of the previous programme in March, preventing Kenya from receiving the final $800 million tranche. Fiscal pressures, combined with the government’s decision to cancel proposed tax hikes following nationwide protests, hindered efforts to rein in the budget deficit and improve revenue collection. Analysts note that securing a new IMF programme is crucial to anchor Kenya’s external debt repayments and restore investor confidence.
The announcement of the IMF mission’s visit had immediate market implications, with Kenya’s dollar bonds experiencing a modest uptick. Market observers suggest that successful negotiations could enhance Kenya’s financial stability and provide the government with critical policy support to navigate ongoing economic challenges.
As the discussions unfold in Nairobi over the next two weeks, Kenyan authorities and citizens alike will be closely watching for outcomes that could shape the country’s economic trajectory in the near term. The IMF has reaffirmed its role as a partner in helping Kenya maintain fiscal discipline, implement governance measures, and pursue sustainable economic growth.