IMF mission heads to Nairobi for talks on fresh loan negotiations as debt pressures mount
In August, Thugge announced that Nairobi wants its next arrangement with the IMF to be a funded programme, which would provide direct financial resources.
The International Monetary Fund (IMF) will send a mission to Nairobi from Thursday, September 25, to Thursday, October 9, to begin talks with Kenyan authorities on a possible new programme.
The IMF delegation will be led by Haimanot Teferra, mission chief for Kenya, while Central Bank Governor Kamau Thugge will head the Kenyan team.
More To Read
- Ethiopia’s debt ‘unsustainable,’ World Bank-IMF warn as country remains in debt distress
- Treasury to launch debt automation system, single account on October 1
- Kenya set to raise Sh370 billion with first-ever debt-for-food swap
- Sidi Ould Tah takes helm at AfDB, unveils 100-day reform plan
- Nearly entire global population exposed to harmful environments - World Bank
- AfDB, AfCFTA and Africa50 sign MoU to unlock continent’s trade potential
"At the request of the Kenyan authorities, an IMF staff team will begin initial discussions in the coming days on a possible Fund-supported programme," Teferra said in a statement, seen by The Eastleigh Voice.
In August, Thugge announced that Nairobi wants its next arrangement with the IMF to be a funded programme, which would provide direct financial resources.
The latest talks come after Kenya and the IMF abandoned the final review of the previous programme in March. As a result, Nairobi did not receive the last $800 million (Sh103.4 billion) from a $3.6 billion (Sh465.1 billion) Extended Fund Facility and Extended Credit Facility.
The failure to conclude that deal followed difficulties in meeting the IMF's conditions. Kenya had promised to narrow its budget deficit and raise more revenue, but plans to increase taxes were dropped after weeks of deadly nationwide protests.
According to financial analysts, Kenya now urgently needs a fresh loan from the IMF to anchor its debt repayments and restore investor confidence. Some had expected the government to seek a non-funded arrangement after falling short of past targets, but Thugge's remarks signalled a preference for direct support.
"IMF remains committed to supporting Kenya in its efforts to maintain macroeconomic stability, safeguard debt sustainability, and strengthen governance," Teferra said.
"We look forward to constructive engagement with the authorities and other stakeholders during our visit to Nairobi."
The Nairobi discussions will be closely watched as Kenya faces tight finances and heavy external obligations.
According to IMF data, the country already owes about 3.02 billion Special Drawing Rights, or nearly $4 billion (Sh516.9 billion), in outstanding credit to the Fund as of September 23, 2025.
Top Stories Today
