The International Monetary Fund's recently appointed Resident Representative to Kenya, Robert Tchaidze, held a meeting with National Treasury Principal Secretary Dr. Chris Kiptoo on Tuesday at the Treasury headquarters.

This visit marked Tchaidze’s formal introduction to senior government officials since taking office in June 2026, succeeding Selim Cakir. The discussions focused on reinforcing collaboration as Kenya navigates significant fiscal challenges.

IMF Funding Excluded from Budget

Kenya’s 2026/27 national budget notably omits new funding from the IMF, reflecting stalled negotiations over a new financial support programme. Treasury documents presented to Parliament show no expected disbursements under the Extended Credit Facility, Extended Fund Facility, or Resilience and Sustainability Fund.

The freeze follows delays in Kenya’s response to a corruption audit requested in October 2024 and finalized in February 2026. The IMF has made anti-corruption reforms a key condition for resuming bailout discussions. Meanwhile, Kenya’s public debt has risen above KSh 12.8 trillion, increasing pressure on fiscal management.

Alternative Financing from World Bank

With IMF funding uncertain, Kenya is turning to the World Bank for support, seeking approximately KSh 193.5 billion (USD 1.5 billion) through the Rapid Results Approach. This financing aims to mitigate economic pressures from global geopolitical developments.

PS Kiptoo highlighted efforts to expand public-private partnerships in infrastructure financing, backed by a regulatory framework encouraging private sector engagement across various sectors.

Focus on Economic Transformation

The meeting also covered Kenya's Bottom-Up Economic Transformation Agenda (BETA), the government’s flagship economic plan underpinning the KSh 4.3 trillion (USD 32.5 billion) 2025/26 budget. The agenda prioritizes agricultural transformation, housing, healthcare, and digital economy development.

Micro, Small, and Medium Enterprises (MSMEs), which contribute about 40% of GDP and employ over 80% of the workforce, remain central to this transformation strategy.

Looking ahead, the 2026/27 budget process will incorporate zero-based budgeting reforms and implement a Treasury Single Account to enhance public financial management.