Treasury Cabinet Secretary Henry Rotich's office confirmed active negotiations with the International Monetary Fund for a renewed standby credit facility, following the collapse of a prior $989.8 million agreement in September 2018. The arrangement expired after Kenya failed to meet conditions including removing a cap on commercial lending rates.
IMF representative Jan Mikkelsen confirmed ongoing formal discussions to a Reuters correspondent, though no details were disclosed. Government officials are preparing to launch a $2.5 billion Eurobond issuance, with financial analysts noting that IMF backing could enhance borrowing terms through improved market credibility.
The 2018 facility required structural reforms that remained unfulfilled, according to sources. While no official timeline has been announced for the new talks, the developments align with Kenya's fiscal strategy to stabilize public debt amid economic pressures, as reported in March 2019.
