The International Monetary Fund (IMF) has confirmed that it has received a formal request from Kenyan authorities for a new financing programme and will engage with the government in the coming period. In a statement issued on Monday March 17, the IMF announced that a ninth review under its current extended fund facility and extended credit facility programmes would not proceed.
While the IMF did not specify the details of the programme being sought, Kenya’s Finance Minister John Mbadi previously told Reuters that it would be a new financing programme. The East African nation continues to face significant challenges, requiring ongoing assistance from the IMF to stabilise its economy after a surge in debt-servicing costs, which has resulted from a borrowing spree over the past decade.
The Kenyan government has been seeking fresh financing options following public protests last year, which led to the abandonment of a proposed plan to increase revenue through higher taxes. The continued support of the IMF is seen as crucial to helping the country maintain economic stability and manage its growing debt burden.