A team from the International Monetary Fund is in Kenya to discuss a new loan programme, the government and the Fund has said.
The East African nation has sought to clinch a new lending programme after the expiry of the previous $3.6-billion (R57.12bn) deal in April, and the two sides have since held a series of talks in Nairobi and Washington.
“An IMF team is scheduled to visit Kenya from 24 February to 4 March 2026 to continue discussions on a successor arrangement aimed at supporting key policy reforms and potentially providing financial assistance,” the government said in a Eurobond prospectus released publicly late on Tuesday.
The talks are aimed at ensuring that any new programme aligns with Kenya’s “fiscal and economic priorities” while supporting macro-economic stability, the government said in the prospectus, part of a $2.25-billion (R35.7bn) issuance last week.
The Washington-based lender confirmed that the staff mission had started.
“We continue to engage in close and constructive dialogue with the Kenyan authorities, including on their request for a new IMF-supported programme,” an IMF spokesperson told Reuters.
Finance minister John Mbadi said earlier this month that Nairobi had formally requested a new programme. The government has not factored in IMF funding for the current fiscal year and the next one starting in July but is keen to strike a deal with the IMF to bolster investor confidence, Mbadi said.
Grappling with high debt servicing, the government has turned to securitisation of some revenue streams to fund development projects, a move that initially curbed its ability to strike a deal with the IMF.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.