NAIROBI, Kenya, Oct 11 – The International Monetary Fund (IMF) has urged Kenya to strengthen public finance management and debt sustainability, following the conclusion of a two-week mission to Nairobi last Thursday.
The IMF team, led by Mission Chief Haimanot Teferra, said the discussions focused on assessing Kenya’s current economic outlook and exploring the government’s forward-looking fiscal and monetary policies that could be supported under a new IMF programme.
“The purpose of the visit was to assess Kenya’s current economic situation and initiate discussions on the government’s forward-looking policies and strategy that could be supported through an IMF program,” the Fund said in a statement.
The IMF delegation emphasized the need for credible fiscal policies, improved governance and transparency, and measures to minimize fiscal, financial, and external sector risks.
Kenya is seeking a new IMF support arrangement after the collapse of its previous $3.6 billion Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programmes earlier this year. The facilities, valued at about $800 million, stalled after the government failed to meet key conditions on revenue collection and deficit reduction.
The Fund reiterated its commitment to assist Kenya in maintaining macroeconomic stability, safeguarding debt sustainability, and promoting inclusive growth.
The mission came just months after the government was forced to withdraw tax hikes in the 2024 Finance Bill following nationwide youth-led protests.
During last week’s post-Monetary Policy Committee briefing, Central Bank Governor Kamau Thugge said officials will hold further talks with the IMF in Washington, D.C., this coming week to negotiate a new financial support package aimed at stabilizing the economy.
