Kenya Plans Further IMF Talks in January Amid Efforts to Secure New Funding Programme
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Kenya will resume talks with the International Monetary Fund in January as the government seeks a new financial support arrangement following the expiry of its $3.6 billion programme in April, Central Bank Governor Kamau Thugge said. IMF staff are expected to visit Nairobi to negotiate a new funded programme aimed at sustaining fiscal stability and external financing amid sluggish private-sector credit growth and subdued economic expansion.
Talks have been delayed by differences over the classification of securitised loans, though authorities remain focused on securing an agreement with a lending component to ease budgetary and external financing pressures. On Tuesday, the central bank cut its policy rate by 25 basis points to 9.0%, its ninth consecutive reduction, with the shilling holding steady near 129 per dollar and the 2035 Eurobond yield easing 3 basis points to 9.85% post-announcement.
The renewed IMF engagement underscores Kenya’s reliance on external funding to support reserves and fiscal management, with the January outcome likely to influence sovereign bond pricing and investor positioning ahead of the 2026 budget.
