An International Monetary Fund staff mission ended a visit to Nairobi on 4 March after reviewing Kenya’s macroeconomic position and ongoing negotiations over a possible new IMF arrangement.
- •The visit focused on fiscal policy, macroeconomic risks, and reform priorities.
- •Kenya entered a combined Extended Fund Facility and Extended Credit Facility program in 2021 worth about US$3.6 billion (about KSh465.8 billion), of which roughly US$3.12 billion (about KSh403.7 billion) was disbursed before the final program review stalled in 2025.
- •Talks now move into a critical phase as Kenya seeks to rebuild fiscal credibility while managing domestic political and fiscal pressures, as well as major geopolitical disruptions.
"The IMF staff team engaged with the authorities on recent macroeconomic and policy developments and key risks, including potential spillovers from developments in the Middle East," Haimanot Teferra, who led the staff mission, said.
“Discussions highlighted the need to strengthen fiscal discipline, enhance fiscal credibility, and build resilience to external shocks. These efforts should be supported by strengthened governance and greater public sector efficiency,” he added.
Kenya still carries significant exposure to the Fund. Outstanding IMF credit stands near SDR 2.8 billion, equivalent to about US$3.7 billion (around KSh478.8 billion). Public debt is still elevated near 65% of GDP, keeping fiscal policy under close scrutiny from international lenders and investors.
Fiscal consolidation formed a central pillar of the earlier arrangement. Progress slowed after political pressure forced withdrawal of major tax measures in the Finance Bill 2024, weakening revenue projections and delaying completion of the final program review. Since then the government turned to alternative financing sources, including Eurobond issuance and increased domestic borrowing, while continuing engagement with the IMF on a potential new program.
Technical discussions will continue during the IMF–World Bank Spring Meetings in April 2026.
