Kenya is engaging in ongoing discussions with the International Monetary Fund (IMF) to establish a new financial support programme, according to Central Bank of Kenya (CBK) Governor Kamau Thugge.
Speaking after the Monetary Policy Committee meeting in Nairobi, Thugge confirmed that an IMF mission will soon arrive in the country to initiate Article IV consultations, which assess Kenya’s economic performance and policy direction.
"We expect an IMF team to come shortly to Nairobi to initiate the Article IV discussions. In the context of those discussions, we will have further consultations about our relations and in particular about having a Fund-supported programme," Thugge said.
Funding Needs and Borrowing Plans
The government’s draft Budget and Economic Outlook Paper for the 2027/28 financial year projects total borrowing of Ksh1.321 trillion to bridge the budget deficit. Of this, Ksh1.1 trillion is expected from domestic sources and Ksh236 billion through external loans.
This borrowing is part of a proposed Ksh5.323 trillion budget, reflecting the government’s ongoing need to secure financing amid increasing expenditure pressures.
Challenges and Conditions for IMF Support
Kenya’s recent relationship with the IMF has been complicated by concerns over governance and corruption. Earlier in 2026, talks stalled after the IMF requested the government to respond to a governance and corruption diagnostic report.
The IMF has emphasized that any future loan arrangement will depend on Kenya presenting credible plans to reduce fiscal deficits, implement governance reforms, and maintain economic stability.
Looking Ahead
- The upcoming IMF mission will review Kenya’s economic policies and performance.
- Negotiations will focus on securing a Fund-supported programme to aid Kenya’s financing needs.
- Success depends on Kenya addressing governance issues and fiscal discipline.
