Kenya has canceled the 9th review of its loan program with the IMF, under its Extended Fund Facility and Extended Credit Facility. This decision was made following discussions between IMF staff and Kenyan authorities during a visit in March 2025. Kenya has requested a new program from the IMF, focusing on fiscal sustainability amidst economic challenges.
The International Monetary Fund (IMF) has decided to cancel the ninth review of its loan program with Kenya, which falls under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF). This decision was made during the IMF staff team’s visit to Nairobi from March 6 to March 14, 2025, led by Haimanot Teferra, who assessed Kenya’s economic developments and macroeconomic outlook.
During the visit, discussions were held between the IMF team and key Kenyan officials, including President William Ruto and the Central Bank Governor, Kamau Thugge. It was concluded that the ninth review would not proceed, but Kenya has formally requested a new program from the IMF, which will be explored in future engagements.
The decision aligns with ongoing conversations about Kenya’s economic challenges such as debt sustainability and revenue generation. Although specific reasons for halting the review were not disclosed, the collaborative nature of the discussions indicates a mutual understanding aimed at navigating the country’s financial hurdles.
For context, since the approval of the EFF and ECF programs in April 2021, Kenya has gained access to approximately SDR 2.714 billion (around KSh 465.76 billion). From this amount, SDR 2.343 billion (approximately KSh 402.54 billion) has been approved for disbursement. Additionally, Kenya was approved SDR 407.1 million (about KSh 69.8 billion) under the Resilience and Sustainability Facility since 2023.
Kenya’s cancellation of the ninth review with the IMF reflects strategic shifts in addressing economic challenges. With an emphasis on collaborating for a new program, both parties are focusing on Kenya’s fiscal sustainability. This decision will guide future engagements and funding strategies as Kenya seeks to stabilize its economy amid increasing financial pressures.
Original Source: www.asaaseradio.com
