Kenya cancels 9th review, requests new loan program from IMF

Kenya and the International Monetary Fund have agreed to cancel the 9th review of the loan program under the current Extended Fund Facility and Extended Credit Facility programs.

A staff team from the International Monetary Fund (IMF), led by Haimanot Teferra, wrapped up a visit to Nairobi from 6 to 14 March 2025.

The IMF staff engaged with Kenyan authorities to assess recent economic developments and discuss the country’s macroeconomic outlook.

What was the result of the IMF visit to Kenya?

At the end of the mission the IMF announced that both parties agreed that the ninth review under the existing Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs will not move forward.

“The mission team engaged with the Kenyan authorities on recent developments and the macroeconomic outlook. The Kenyan authorities and IMF staff have reached an understanding that the ninth review under the current Extended Fund Facility and Extended Credit Facility programs will not proceed. The IMF has received a formal request for a new program from the Kenyan authorities and will engage with them going forward,” Teffera said.

During the mission, the IMF team held high-level meetings with key figures, including President William Ruto, Cabinet Secretary for National Treasury Mbadi Ng’ongo, Central Bank of Kenya Governor Kamau Thugge, and their respective teams.

The decision to pivot away from the ninth review under the EFF/ECF programs comes amid ongoing discussions about Kenya’s fiscal and economic challenges, including debt sustainability, revenue mobilisation, and external financing pressures.

Although the statement did not elaborate on the reasons for halting the current review, it underscored a collaborative approach between the IMF and Kenyan officials as they chart a new path forward under a new program.

How much has Kenya received from IMF?

The EFF and ECF programs for Kenya were approved by the IMF Executive Board on 2 April 2021, initially provided access to a total of SDR 1.655 billion (approximately US$2.34 billion at the time of approval).

Earlier TUKO.co.ke reported that the IMF recently approved a KSh 78 billion loan for Kenya as part of the ECF following the combined seventh and eighth review.

The IMF’s total financial commitment to Kenya under the EFF and ECF arrangements stands at SDR2.714 billion (approximately KSh 465.76 billion), of which SDR2.343 billion (about KSh 402.54 billion) has been approved for disbursement since 2021.

Additionally, under the Resilience and Sustainability Facility (RSF) arrangement, Kenya was approved to receive SDR407.1 million (about KSh 69.8 billion) and SDR135.70 million (about KSh 23.3 billion) since 2023.

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