Kenya to resume IMF talks in January for new funding programme
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Kenya will hold further talks with the International Monetary Fund in January as authorities pursue a new financial support arrangement after the April expiry of its $3.6 billion programme, Central Bank Governor Kamau Thugge said. IMF staff will visit Nairobi to negotiate a funded programme designed to maintain fiscal stability and external financing amid sluggish private-sector credit growth and subdued economic expansion.
Discussions have faced delays over disagreements on the classification of securitised loans, though Kenyan officials remain committed to reaching an agreement with a lending component to alleviate budgetary and external financing pressures. On Tuesday, the central bank cut its policy rate by 25 basis points to 9.0%, marking a ninth consecutive reduction, with the shilling steady near 129 per dollar and the 2035 Eurobond yield easing 3 basis points to 9.85% following the announcement.
The renewed IMF engagement highlights Kenya’s ongoing dependence on external funding to bolster reserves and fiscal management, with the January talks set to shape sovereign bond pricing and investor sentiment ahead of the 2026 budget.
