NAIROBI, Kenya, June 11 – The Central Bank of Kenya (CBK) has confirmed that Kenya will begin discussions with the International Monetary Fund (IMF) in September over a new funding arrangement and an Article IV consultation.
The move signals the government’s efforts to secure additional finance to stabilize the economy amid external and internal shocks.
CBK Governor Kamau Thugge, who spoke during a Monetary Policy Committee (MPC), said the government has formally written to the IMF requesting the initiation of talks on a new financial program.
“We are indeed having discussions with the IMF, and the government did send a letter to the IMF requesting to negotiate a new arrangement. We are expecting an IMF team to come in September to start discussions on the Article IV consultation,” said Thugge.
The upcoming engagement is part of the IMF’s regular surveillance process under Article IV of its Articles of Agreement, which involves an in-depth assessment of a member country’s economic and financial policies.
These consultations also offer policy advice to support macroeconomic stability and growth.
The planned talks also point to Kenya’s search for new financing options amid growing pressure to manage its public debt, stabilize the shilling, and stimulate growth in the face of global economic uncertainty.
Kenya is currently under an Extended Fund Facility (EFF) and Extended Credit Facility (ECF) program with the IMF, which has provided critical support for budgetary needs and economic reforms.
However, the country is now seeking a fresh arrangement as the current program nears its conclusion.
The September meeting is expected to review Kenya’s recent economic performance, assess fiscal and monetary policy, and potentially pave the way for new financial support or extended arrangements under the IMF framework.
