Kenya and the International Monetary Fund (IMF) are expected to resume talks of a new funded programme next month, with discussions moving from an initial set date of January 2026.
A fresh visit from the staff of the fund will come in the backdrop of a year when the multilateral lender played hardball after Kenya, terminating a multi-year arrangement in March 2025.
The confirmation of new discussions by the National Treasury keeps hope alive that Kenya can still unlock a fresh funded programme with the fund, an arrangement seen as key in assuring a credible framework of fiscal reforms to anchor debt sustainability.
‘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 of the National Treasury.
Mr Owino did not, however, disclose reasons for the delayed staff visit.
Kenya expects new funding from IMF but has not budgeted for the same in subsequent financial years as it seeks to manage expectations on outcome of ongoing discussions which started at the backend of 2025.
The IMF denied Kenya Sh109.7 billion ($850.9 million) in funding when it terminated a multi-year deal reached in 2021.
This was after Kenya failed to honour conditions agreed upon including restructuring of Kenya Airways (KQ), and lack of restrictions on the use of cash from the fuel stabilisation fund which was diverted to other purposes. In total, the country failed to meet 11 of 16 conditions including placing curbs on spending, bolstering tax collection and settlement of suppliers’ dues.
Kenya is also working to unlock financing from the World Bank development policy operations (DPO) but has struggled to also clear 11 prior terms to free the disbursement.
They include further implementation of the Treasury Single Account, e-government procurement and a framework for faster approval of County Government Additional Allocations Bills.
The IMF marked its last visit to Kenya between September 25 and October 9, 2025, where it assessed prevailing economic situation and discussed forward-looking policies and strategy including needs for a new programme.
The fund affirmed its commitment to economic support for Kenya into the long-term.
‘The IMF staff team made progress in taking stock of the latest macroeconomic and financial sector developments, assessing the economic outlook, and holding initial discussions with the Kenyan authorities and other stakeholders on a reform agenda that could pave way for an IMF-supported programme,’ IMF’s mission chief to Kenya Haimanot Teferra said.
‘We welcome the Kenyan authorities’ candid engagement and remain steadfast in our commitment to partnering with Kenya to secure a more robust, sustainable, and inclusive economic future for all Kenyans.’