The International Monetary Fund and Kenya intend to discuss a new lending program, and they also agreed to cancel the ninth review of the current loan of $ 3.6 billion.
Kenya needs continuous support to maintain its economy on the right track after the high costs of debt service as a result of the expansion of borrowing during the past decade.
“The Kenyan authorities and the International Monetary Fund team have reached an understanding to cancel the ninth review under two programs to facilitate the extension fund and the existing credit facilitation,” said the head of the Haymanot Tiffira Monetary Fund Mission – at a statement issued at the end of the visit to Nairobi.
Official request
She added that the International Monetary Fund had received an official request from the Kenyan government on a new financing program.
The current program started in April 2021, and it was scheduled to end next month, but its implementation was broken due to the bloody protests against the increase in public taxes and the dispute over a new loan from the Emirates.
Finance Minister John Malawadi said last month that the government would seek a funding program.
The IMF stated that, according to the current lending program, it was approved to exchange $ 3.12 billion until the end of next October.
The Ministry of Finance data shows that the total value of the debt to the gross domestic product in Kenya amounted to 65.7% by June 2024, which is much higher than the level of 55%, which is a sustainable rate.
