The government has shared new details about its plan to seek another programme with the International Monetary Fund as the country continues to face a challenging borrowing environment.
The move comes at a time when Kenya’s public debt has reached about Ksh11.8 trillion, creating pressure on the government to find reliable ways to manage its finances and meet its obligations without straining the local economy.
Central Bank Governor Kamau Thugge explained the situation during the post Monetary Policy Committee briefing held on Wednesday in Nairobi.
He noted that discussions with the IMF are ongoing and that the next major step will take place early next year.
According to him, a team from the IMF is expected to visit Kenya in January to continue talks on what could become a new support arrangement.
The governor stated that the goal is to secure a programme that includes funding to help the government navigate the tight borrowing space that has affected many emerging markets globally.
He explained that Kenya’s relationship with the IMF has remained active even after the country’s previous programme expired in April. The earlier programme was valued at Ksh465 billion and helped Kenya manage its economic recovery after the disruptions caused by global shocks.
It also supported reforms in key sectors and provided the country with financial stability during difficult times.
With the expiry of the programme, the government now believes a fresh arrangement is needed to maintain that stability and ensure Kenya can meet both local and international financial commitments.
Reports have noted that senior government officials, including Governor Thugge, have shown clear interest in securing another agreement that includes lending. This is because global borrowing conditions have become tighter, with higher interest rates and reduced availability of cheap loans.
As a result, Kenya is looking for reliable partners who can offer support while also giving room for necessary reforms. Officials believe a new programme with the IMF could give the country more breathing space as it continues to improve revenue collection and manage spending.
The IMF’s visit in January is expected to bring more clarity on what the next steps will be. The discussions will likely focus on Kenya’s economic outlook, financial needs and the reforms that may be included in a new deal. While details of the possible programme have not yet been released, the government has maintained that its priority is to keep the economy stable and protect essential services even as it works to reduce debt pressure.
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