An International Monetary Fund (IMF) staff team concluded a two-week visit to Nairobi, reporting substantial progress in initial discussions that could lead to a new IMF-funded program for Kenya. The mission, led by Ms. Haimanot Teferra, Mission Chief for Kenya, was aimed at assessing the country’s current economic health and exploring the government’s forward-looking policy strategy. IMF said on Friday.
The team, which visited from September 25 to October 9, 2025, confirmed that initial talks focused on developing a comprehensive reform agenda designed to strengthen Kenya’s economy following the expiry of its previous IMF arrangement.
“The IMF staff team made progress in taking stock of the latest macroeconomic and financial sector developments, assessing the economic outlook, and holding initial discussions with the Kenyan authorities and other stakeholders on a reform agenda that could pave the way for an IMF-supported program,” Ms. Teferra stated at the conclusion of the visit.
The IMF staff engaged in extensive meetings across government, including with H.E. President William Ruto; Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi Ng’ongo; and Governor Kamau Thugge of the Central Bank of Kenya.
Discussions were not limited to the executive branch, as the team also met with members of Parliament, officials from various government agencies, civil society organizations, private businesses, the financial sector, and development partners, underscoring the comprehensive nature of the assessment.
Ms. Teferra welcomed the Kenyan authorities’ “candid engagement” and reaffirmed the IMF’s commitment to partnering with Kenya to secure “a more robust, sustainable, and inclusive economic future for all Kenyans.”
The former IMF program for Kenya was a $3.6 billion, 38-month arrangement (Extended Fund Facility/Extended Credit Facility) initiated in 2021.
Its main goal was to help Kenya recover from COVID-19 shocks, reduce debt vulnerabilities, and improve public finances through fiscal consolidation and governance reforms.
However, the program expired in early 2025 without completing its final review, largely because Kenya struggled to meet key targets, particularly concerning domestic revenue collection, and faced widespread public protests over proposed austerity measures like tax hikes. The government is now negotiating a successor loan program.
The IMF team is now returning to Washington, D.C., to finalize technical work. Discussions with the Kenyan authorities are scheduled to continue during the upcoming IMF Annual Meetings, marking the next critical step toward finalizing the structure and terms of a potential new program.
