Kenya has initiated talks with the International Monetary Fund (IMF) to establish a fresh lending program ahead of the current arrangement’s expiration in April, the finance minister has confirmed.
The country seeks continued financial backing to stabilize its economy, which has been under pressure due to rising debt repayments. Plans to generate revenue through tax hikes were scrapped last year following widespread protests.
A $1.5 billion loan from the United Arab Emirates remains an option, but authorities are also exploring alternatives such as issuing a Eurobond. Officials highlight the improved credit outlook as a positive factor in attracting financing.
Meanwhile, concerns over reduced foreign aid from the United States have added to fiscal challenges, with the government considering budget adjustments to compensate for potential shortfalls.
Economic indicators show some stability, including a decline in inflation and a drop in Treasury bill yields. Growth is projected at 5.3% this year, supported by strong agricultural output.
To enhance public trust, the government has ramped up engagement efforts, with finance officials participating in open discussions to clarify economic policies and address concerns from citizens.