Kenya is set to resume negotiations with the International Monetary Fund (IMF) over a new funding programme, with discussions now scheduled for February, after an initial plan to hold them in January 2026 was postponed.
The upcoming visit from IMF staff comes after a challenging 2025, when Kenya terminated a multi-year programme with the lender in March, prompting a tough response from the fund.
The National Treasury confirmed that fresh talks are on the horizon, raising hopes that Kenya could still secure a funded programme, widely viewed as crucial for guiding fiscal reforms and ensuring debt stability.
“Before the end of next month, the IMF is likely to be back in the country to continue with the discussions,” said Raphael Owino, director general of the Public Debt Management Office at the National Treasury. He did not, however, provide details on why the staff visit was delayed.
While Kenya anticipates potential new funding from the IMF, the Treasury has not included the money in future budgets, signaling caution as the ongoing discussions, which started late in 2025, progress.
The previous deal, reached in 2021, was cancelled by the IMF, denying Kenya Sh109.7 billion ($850.9 million) due to the country’s failure to meet agreed conditions.
Among the unmet conditions were the restructuring of Kenya Airways and restrictions on the use of funds from the fuel stabilisation account, which were diverted to other purposes.
In total, Kenya did not comply with 11 of the 16 requirements, including curbing spending, improving tax collection, and settling suppliers’ payments.
In parallel, Kenya is also pursuing additional financing through the World Bank’s development policy operations, signaling efforts to diversify support for its economic reform agenda.
