Kenya’s negotiations for a new financing programme with the International Monetary Fund (IMF) have been put on hold pending the government’s feedback on the lender’s governance and corruption assessment.
According to Reuters, the IMF confirmed that it had shared a draft of its governance diagnostic assessment with the Kenyan government and is awaiting official comments before the report can be finalised.
“The IMF shared the draft Governance Diagnostic Assessment with the Kenyan authorities and is awaiting their comments,” the lender told the publication on Thursday, June 25.
The assessment sought to identify governance weaknesses and corruption vulnerabilities that have negatively affected the country’s economy and recommend necessary reforms.
Treasury CS John Mbadi with Kristalina Georgieva, Managing Director of the International Monetary Fund, at IMF Headquarters on April 14, during the 2026 Spring Meetings.
Photo
Treasury
However, the Bretton Woods Institution noted that the report will be published only with the consent of President William Ruto’s administration.
This means that negotiations for Kenya’s next IMF programme remain incomplete months after the country exited its previous multi-billion-shilling funding arrangement.
The lender also said it is discussing the timing for the next annual visit, also known as the Article IV consultation on the state of the Kenyan economy’s health.
Kenya had begun discussions with the lender for a new programme following the premature end of its previous IMF facility, whose final review was abandoned early in 2025.
Treasury Cabinet Secretary John Mbadi and Central Bank of Kenya Governor Kamau Thugge have previously confirmed that Kenya is negotiating a new programme to grant Kenya a new loan facility.
The governance and corruption assessment, which is now at the centre of the ongoing negotiations, began last year after Kenya formally requested IMF technical assistance.
According to an IMF statement released on July 1, 2025, the Fund conducted a governance diagnostic mission in Kenya between June 16 and June 30, 2025.
The exercise examined governance across several critical sectors, including public procurement, public financial management, tax administration, mining, market regulation, Central Bank governance and anti-money laundering measures.
The lender has now confirmed that the draft has been handed to the Kenyan government for review, marking one of the final stages before the assessment can be published.
CS Mbadi leading a delegation to IMFWorld Bank Annual Meetings held Washington on Monday, October 21, 2024.
Photo
National Treasury
