https://en.sputniknews.africa/20250317/kenya-seeks-new-imf-program-amid-rising-debt-challenges-1071126526.html
Kenya Seeks New IMF Program Amid Rising Debt Challenges
Kenya Seeks New IMF Program Amid Rising Debt Challenges
Sputnik Africa
Last year, Kenya agreed to a $1.5 billion bond with the UAE at 8.25% interest, repayable in $500 million installments in 2032, 2034, and 2036. However, at the... 17.03.2025, Sputnik Africa
2025-03-17T16:50+0100
2025-03-17T16:50+0100
2025-03-17T16:50+0100
sub-saharan africa
kenya
international monetary fund (imf)
economy
east africa
debt
budget
united arab emirates (uae)
middle east
finance
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Kenya is set to negotiate a new lending program with the International Monetary Fund (IMF) as its current $3.6 billion facility expires on April 1.Haimanot Teferra, the IMF's mission chief, confirmed in a statement that Kenya had formally requested a new program. Both parties agreed not to proceed with the ninth review of the existing Extended Fund Facility and Extended Credit Facility programs, leaving a potential $480 million disbursement off the table.The decision comes as Kenya faces a significant budget-financing gap amid mounting debt repayments. The current IMF program, launched post-COVID-19, was designed to support economic recovery but has struggled to address the fiscal pressures caused by increased government spending in recent years.While details of the new deal remain undisclosed, the IMF mentioned it could involve either a lending or non-lending arrangement. A separate Resilience and Sustainability Facility, approved in July 2023, has already disbursed $180.4 million of its $541.3 million allocation, though its future role remains unclear.
https://en.sputniknews.africa/20250301/kenya-reportedly-delays-drawing-15-billion-uae-bond-to-align-with-budget-plans-1070884187.html
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kenya, international monetary fund (imf), economy, east africa, debt, budget, united arab emirates (uae), middle east, finance
kenya, international monetary fund (imf), economy, east africa, debt, budget, united arab emirates (uae), middle east, finance
Kenya Seeks New IMF Program Amid Rising Debt Challenges
Christina Glazkova
Writer / Editor
Last year, Kenya agreed to a $1.5 billion bond with the UAE at 8.25% interest, repayable in $500 million installments in 2032, 2034, and 2036. However, at the end of February, Kenya postponed using the bond to ensure it fits the fiscal strategy, with the finance minister highlighting the strategic aim for efficient fund use within the budget.
Kenya is set to negotiate a new lending program with the International Monetary Fund (IMF) as its current $3.6 billion facility expires on April 1.
Haimanot Teferra, the IMF's mission chief,
confirmed in a statement that Kenya had formally requested a new program. Both parties agreed not to proceed with the ninth review of the existing Extended Fund Facility and Extended Credit Facility programs, leaving a potential $480 million disbursement off the table.
The decision comes as
Kenya faces a significant budget-financing gap amid mounting debt repayments. The current IMF program, launched post-COVID-19, was designed to support economic recovery but has struggled to address the fiscal pressures caused by increased government spending in recent years.
While details of the new deal remain undisclosed, the IMF mentioned it could involve either a lending or non-lending arrangement. A separate Resilience and Sustainability Facility, approved in July 2023, has already disbursed $180.4 million of its $541.3 million allocation, though its future role remains unclear.
