Kenya Cancels IMF 9th Review and Seeks New Loan Program

Kenya has officially canceled the ninth review of its loan program with the IMF, following discussions that unveiled ongoing economic challenges. The IMF has acknowledged a formal request from Kenya for a new program as an alternative path forward. From the original agreement in 2021, the IMF’s financial commitment to Kenya remains substantial despite the review’s cancellation.

The International Monetary Fund (IMF) has officially canceled the ninth review of Kenya’s loan program under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF). This decision was made following a visit from an IMF staff team, led by Haimanot Teferra, who engaged with Kenyan authorities from March 6 to March 14, 2025, to evaluate the country’s economic conditions and future outlook.

The discussions during the IMF mission highlighted ongoing fiscal and economic challenges faced by Kenya, including issues surrounding debt sustainability and revenue mobilization. Following these talks, it was decided that the current review would not proceed, marking a shift in strategy as the Kenyan authorities formally requested a new program from the IMF.

The EFF and ECF programs, which the IMF Board initially approved on April 2, 2021, granted Kenya access to a total of SDR 1.655 billion (approximately USD 2.34 billion at that time). Since then, the IMF has committed a total of SDR 2.714 billion (around KSh 465.76 billion), with SDR 2.343 billion already approved for disbursement, reflecting ongoing financial support despite the cancellation of the ninth review.

In summary, the IMF’s cancellation of the ninth review of Kenya’s loan program indicates a significant shift in financial strategy due to prevailing fiscal challenges. With a formal request for a new program submitted by Kenya, future engagements are anticipated to address debt sustainability and economic stabilization. This development underscores a collaborative approach in navigating Kenya’s economic landscape amidst existing financial commitments from the IMF.

Original Source: www.asaaseradio.com