Kenya has formally requested a new lending program from the International Monetary Fund (IMF), which will incorporate unused funds from the current program, following the mutual decision to end the ninth and final review of the agreement last week.
On March 24, 2025, Finance Minister John Mbadi clarified that the decision to halt the review was due to time constraints and denied reports suggesting a fallout between Kenya and the IMF. The current program, which was set to expire next month, includes a $3.6 billion Extended Credit Facility and Extended Fund Facility, with around $800 million still unused.
Despite reports indicating that Kenya had missed some targets required for the program, Mbadi stressed that there was no disagreement with the IMF. He reassured that the IMF had found Kenya’s economic fundamentals to be stronger than expected, particularly in terms of debt sustainability. Kenya has faced challenges in reducing its fiscal deficit and improving revenue collection, key conditions for the IMF’s support. Mbadi further emphasized that the carryover funds from the ninth review would potentially be included in the new program, with discussions ongoing.
The IMF, for its part, has not provided specific details regarding the new program request but confirmed that talks between the Kenyan government and the Fund are in progress. While Kenya failed to meet some targets during the seventh and eighth reviews, the IMF board approved the disbursement of funds tied to these reviews last October. With the IMF’s support still in place, Kenya is hopeful that the new program will address its fiscal challenges and continue to foster economic growth.