An International Monetary Fund (IMF) staff team will arrive in Nairobi on September 25 for a two-week mission to begin discussions with Kenyan authorities on a potential new IMF-supported program.
- •The visit, which runs until October 9, will be led by Haimanot Teferra, the IMF mission chief for Kenya.
- •In a statement issued on September 24, Ms. Teferra confirmed that the talks follow a formal request from the Kenyan government.
- • She said the Fund is committed to supporting Kenya in maintaining macroeconomic stability, safeguarding debt sustainability, strengthening governance, and promoting inclusive and sustainable growth.
The visit comes at a critical time for Kenya, which earlier this year missed the final review of its previous IMF program, delaying access to about $976 million in financing. The stalled Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangement, approved in 2021 and later expanded to $3.9 billion including a Resilience and Sustainability Facility (RSF), had so far disbursed more than $3 billion before the programme was abandoned in early 2025.
Kenya’s outstanding credit from the IMF currently stands at about $3.8 billion. The government is seeking a new funded program that would provide balance of payments support while signaling policy credibility to other lenders. Analysts note that IMF endorsement is often a prerequisite for unlocking additional concessional financing from the World Bank and other bilateral partners.
The new negotiations are expected to focus on measures to raise revenue, reduce fiscal deficits, and manage the country’s heavy debt servicing obligations. Kenya spends more than half of its annual revenues on debt repayment, a burden that continues to strain public finances.
The IMF has also been conducting a governance diagnostic in Kenya, with a draft assessment expected later in 2025. This forms part of broader structural reforms tied to Fund engagement.
If successful, the Nairobi discussions could pave the way for a new arrangement that balances Kenya’s fiscal pressures with the need to sustain growth and social spending.
