The International Monetary Fund (IMF) has outlined a set of fiscal and governance reforms that Kenya must implement to qualify for a new financial support program. The directives were issued after an IMF team concluded a two-week mission in Kenya to assess the country’s economic outlook and reform agenda.
According to IMF Mission Chief for Kenya, Haimanot Teferra, the government must prioritize restoring fiscal credibility, ensuring debt sustainability, and strengthening transparency and governance within the public sector. She emphasized that these reforms are essential to reducing fiscal, financial, and external risks that continue to undermine Kenya’s economic stability.
“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 Kenyan authorities and stakeholders on a reform agenda that could pave the way for an IMF-supported program,” Teferra stated.
During the mission, the IMF delegation met with President William Ruto, Treasury Cabinet Secretary John Mbadi, and Central Bank Governor Kamau Thugge, among other key stakeholders. The team also engaged with members of Parliament, government agencies, civil society organizations, private sector representatives, and development partners.
The proposed IMF program is expected to replace the US$3.6 billion (Ksh465.2 billion) arrangement that ended prematurely in March. If approved, the new agreement will aim to stimulate economic growth and lower the cost of living for Kenyans.
Earlier this year, another IMF team reviewed Kenya’s anti-corruption framework to ensure that governance standards are strengthened before any new funding is approved. The announcement comes shortly after the World Bank advised Kenya to raise some consumption taxes, including excise duty and VAT, citing the rise in pending bills from Ksh421.6 billion in March to Ksh526 billion by June.
With the IMF’s renewed engagement, Kenya faces the critical task of balancing fiscal discipline with social and economic priorities to secure sustainable growth.
