This archive report was first published on 24 November 2019.
Kenya is set to engage in talks with the International Monetary Fund (IMF) in early 2020 to discuss a new precautionary stand-by arrangement, the IMF announced on November 23, 2019. This comes after the country implemented a series of austerity measures aimed at reducing its budget deficit.
The IMF team, led by Benedict Clements, met with Kenyan authorities, including acting National Treasury Cabinet Secretary Ukur Yatani, Central Bank of Kenya Governor Patrick Njoroge, and Head of the Public Service Joseph Kinyua, to discuss recent economic developments and the government's reform plans.
Kenya had previously fallen out with the IMF in June 2017 due to fiscal indiscipline, which led to unsustainable debt levels. The country had requested an extension of the facilities but the stand-by arrangement (SBA) amounting to $989 million (Sh100 billion) expired in September 2018.
The IMF team noted that the Kenyan economy has continued to perform well, with most macro-economic indicators, including GDP growth, inflation, and current account deficit, well anchored. The country's foreign currency reserves stood at $8,779 million as of November 21, enough to cover imports for 5.44 months.
