Nwali Chidozie
Kenya is seeking a funded program from the International Monetary Fund (IMF), according to the country’s central bank governor, Kamau Thugge. The announcement comes on Wednesday ahead of a scheduled IMF visit next month, where a new program request will be discussed.
The East African country and the IMF had previously agreed to a new lending program earlier this year, after walking away from the final review of a prior arrangement.
Finance Minister John Mbadi had stated that the new program was requested to account for unused funds from the previous facility, which had around $800 million remaining.
The shift to a “funded” program indicates Kenya’s desire for a new agreement that provides financial disbursements, as opposed to a non-funded one which focuses on policy advice and monitoring.
An IMF delegation is expected in Nairobi in September for an Article IV consultation, a regular economic health check for member countries. The visit will also serve as the platform for formal discussions on the new funding program.
The request for a new program follows a period of economic challenges for Kenya, including a high debt burden and the need to balance fiscal tightening with the public’s demands for social spending.
Meanwhile, previous IMF-backed measures, such as new tax proposals, have faced public opposition and protests. The outcome of the upcoming discussions will be critical for Kenya’s economic trajectory in the months ahead, as the government seeks to secure much-needed funding while navigating domestic political and social pressures.
