IMF Team Lands in Nairobi to Negotiate New Loan Deal and Successor Programme Talks
A delegation from the International Monetary Fund (IMF) has arrived in Nairobi to start formal talks with the government on a new IMF-supported programme.
In a statement issued on Wednesday, September 24, Haimanot Teferra, the IMF Mission Chief for Kenya, said the team will be in the country from Thursday to October 9. The talks will be to set up a successor arrangement after the premature end of the US$3.6 billion (Ksh465.2 billion) programme in March.
“At the request of the Kenyan authorities, an IMF staff team will begin initial discussions in the coming days on a possible Fund-supported program. We look forward to constructive engagement with the authorities and other stakeholders during our visit to Nairobi,” said Teferra.
She added that the IMF remains committed to supporting Kenya on debt sustainability, governance and inclusive economic growth.
Central Bank of Kenya (CBK) Governor Kamau Thugge had earlier said the team’s visit will include a comprehensive review of the country’s economic and financial policies and a debt sustainability analysis. This will determine if the IMF will approve a new financing agreement.
“We are indeed having discussions with the IMF and the government sent a letter requesting to negotiate a new arrangement. We are expecting an IMF team to come in September to start discussions on the Article IV consultation,” Thugge said earlier this year.
This is the second IMF mission to Kenya in four months. In June, another team assessed the country’s anti-corruption frameworks, governance structures and market regulations, as the lender insists on stronger institutional safeguards before releasing new funds.
An IMF spokesperson said these reviews are part of the lender’s long-term commitment to strengthening Kenya’s governance and anti-graft frameworks.
If the talks are successful, the new programme will play a big role in boosting economic growth and reducing cost of living.
The talks also come at a time the government is looking to diversify financing options. Last month, Prime Cabinet Secretary Musalia Mudavadi announced plans for a diaspora bond to mobilise resources from Kenyans abroad.
The bond is expected to raise between US$250 million (Ksh32.3 billion) and US$500 million (Ksh65 billion) with a broader target of attracting US$3.8 billion (Ksh491 billion) in diaspora investments.
The bond will be used for infrastructure projects especially in energy and transport. With IMF talks ongoing and new financing options coming, the government is counting on external help to stabilise the budget and achieve long term goals.
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IMF Team Lands in Nairobi to Negotiate New Loan Deal and Successor Programme Talks