Central Bank of Kenya (CBK) Governor Kamau Thugge has revealed details of multi-billion loans Kenya is eyeing from the International Monetary Fund and the United Arab Emirates (UAE).
Thugge was responding to a question asked by a journalist during the Monetary Policy Committee (MPC) meeting on Wednesday, April 9, regarding Kenya securing a new IMF program, the amount involved, and an update on the UAE loan.
The CBK Governor said there are discussions with the IMF, and these discussions will continue during the Spring meetings.
CBK Governor Reveals Progress of Multibillion Loans from IMF and UAE
He, however, revealed that the exact amounts are not known at this time, and they will be asking for more access.
“Of course, we are in discussions with the IMF, and we will continue these discussions during the spring meetings,” he added.
“The amounts are not known at this stage, but we would probably be asking for more access, rather than exceptional access, when we finalize the discussions.”
On the UAE loan, Thugge mentioned that it will be addressed within the 2025/2026 financial year, as the Ministry of Treasury is making finalizations on it.
“Regarding the UAE loan, we still expect that it will be addressed within this financial year, and the Treasury is working on it,” said Thugge.
Also Read: Ruto Asks IMF for Unspecified Multibillion Loan
Kenya Seeks New IMF Loan Deal
This comes after Kenya, in March this year, requested the IMF to drop the ninth review of its existing loan program—valued at over Ksh 460 billion—and instead seek a fresh arrangement.
The move signaled a shift in the government’s approach to IMF engagement amid rising fiscal pressure and external debt obligations.
An IMF mission team, which met with President William Ruto and top economic officials, concluded discussions without disbursing the next tranche of Ksh103.6 billion under the current Extended Fund Facility and Extended Credit Facility programs.
While the IMF acknowledged Kenya’s request for a new program, it remained unclear whether the government is seeking more flexible terms, a longer repayment period, or a broader reset of its fiscal commitments.
“The mission team engaged with the Kenyan authorities on recent developments and the macroeconomic outlook. The IMF has received a formal request for a new program from the Kenyan authorities and will engage with them going forward,” the IMF said in a statement.
“The Kenyan authorities and IMF staff have reached an understanding that the ninth review under the current Extended Fund Facility and Extended Credit Facility programs will not proceed.”
Also Read: Kenyans to Enjoy Cheaper Loans as CBK Lowers Interest Rates on Loans Again
UAE Loan
In February 28 this year, Treasury CS John Mbadi said Kenya will wait to draw cash from a $1.5 billion (KSH 193 billion) privately placed bond in the UAE so that it can fit into its budget plans for this financial year.
“The reason we haven’t done it is because we have to do it within our fiscal framework,” Mbadi told Reuters, referring to tapping cash from the UAE loan.
“We are still holding out to see exactly how much of a budget gap we will have from the external finances before we draw the UAE money.”
The government has struggled with a surge in debt service costs in recent years and is seeking to solidify its financing.
The UAE’s lending, agreed upon last year, carries an 8.25% interest rate and will be repaid in $500 million installments in 2032, 2034, and 2036, according to Mbadi.
“We can use it partly for liability management, partly for budgetary support, or exclusively for budgetary support,” he added.
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