IMF has initiated a staff mission in Kenya to engage in discussions regarding a new agreement
A delegation from the International Monetary Fund is currently in Kenya to engage in discussions regarding a new loan program, as confirmed by both the government and the Fund.
The East African nation is aiming to secure a new lending program following the conclusion of the previous $3.6 billion agreement in April, with both parties engaging in a series of discussions in Nairobi and Washington since then.
The government announced in a Eurobond prospectus made public late on Tuesday that an IMF team is set to visit Kenya from 24 February to 4 March 2026 to further discussions on a successor arrangement intended to support essential policy reforms and possibly offer financial assistance.
The discussions focus on ensuring that any new program is in line with Kenya’s “fiscal and economic priorities” while also promoting macroeconomic stability, as stated by the government in the prospectus, which is part of a $2.25 billion issuance from last week.
The lender based in Washington confirmed that the staff mission has commenced.
An IMF spokesperson informed Reuters, “We are maintaining close and constructive dialogue with the Kenyan authorities, including regarding their request for a new IMF-supported program.”
Earlier this month, Finance Minister John Mbadi announced that Nairobi had officially requested a new program. According to Mbadi, the government has not included IMF funding in its plans for the current fiscal year or the upcoming one beginning in July, but it is eager to reach an agreement with the IMF to enhance investor confidence.
Facing significant challenges with high debt servicing, the government has opted for the securitization of certain revenue streams to finance development projects, a decision that initially hindered its capacity to negotiate a deal with the IMF.
