Kenya has formally approached the International Monetary Fund (IMF) to negotiate a new financing agreement as its current IMF-supported programmes approach their end.
The government has relied heavily on the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), which have provided over Ksh388 billion in funding during a time of severe debt strain.
The IMF acknowledged receiving Kenya’s request and announced plans to send a mission team to Nairobi in September 2025 to begin formal negotiations.
Speaking at a press briefing on June 11, 2025, Central Bank of Kenya (CBK) Governor Kamau Thugge confirmed that the government had already initiated talks with the IMF to secure a new deal.
“Indeed, we are having discussions with the IMF. The government did send a letter to the IMF requesting to negotiate a new arrangement. We expect the IMF team to come in September to start discussions on Article IV, and we shall also engage them on a new arrangement,” Thugge said.
The existing ECF/EFF programme, which was launched in April 2021, aimed to help Kenya recover from the economic fallout of the COVID-19 pandemic and strengthen its financial stability. Initially valued at Ksh465.48 billion, the programme disbursed Ksh403.42 billion by October 2024.
However, the final tranche of Ksh62.06 billion will not be released, as both parties have agreed to end the programme before the ninth review.
Following a recent visit to Nairobi, IMF mission chief Haimanot Teferra confirmed Kenya’s formal request for a new arrangement. “We will engage with them going forward,” she stated.
The IMF also confirmed it will not proceed with the ninth review under the current deal. However, it has not specified whether the new arrangement will involve direct financial assistance or focus on technical support.
Nonetheless, Treasury Cabinet Secretary John Mbadi previously indicated that Kenya will pursue a financing package, signaling the government’s ongoing need for IMF-backed financial support to stabilize its economy.
