Categories: Business

Kenya and IMF to Negotiate New Lending Program

Kenya and the International Monetary Fund (IMF) are seeking to launch formal talks to negotiate a new lending program, abandoning the ninth review of the existing $3.6 billion loan which is set to expire in April 2025.

The decision comes, amid Kenya’s worrying debt situation which keeps skyrocketing daily following a decade of heavy borrowing. As of June last year 2024, Kenya’s debt-to-GDP ratio hit 65.7% last, above the sustainable 55% threshold.

The IMF has confirmed having received a formal request from Kenyan authorities for a new deal. Both sides opted to halt the current Extended Fund Facility and Extended Credit Facility programs, which began in 2021.

Kenya has been reliant of IMF for loans and with the good relationship the country has kept with the IMF, the formal negotiation both parties plan to have if goes successful, will bolster Kenya’s existing relationship with IMF.

Branislav Moses Opudo

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