IMF Staff to Fly to Nairobi for New Loan Talks

The International Monetary Fund (IMF) will send a team to Nairobi for 15 days to begin discussions with the government on a possible loan program.

According to the fund, the team, led by its mission chief for Kenya Haimanot Teferra, will be in the country from September 25 to October 9.

The mission is expected to engage senior government officials on policy measures that could restore confidence and stabilize the economy.

Furthermore, the notice stated that the move was made at the request of the Kenyan government. 

“At the request of the Kenyan authorities, an IMF staff team will begin initial discussions in the coming days on a possible Fund-supported program,” Teferra said in a statement released on Tuesday, September 23.

The engagement is part of the fund’s regular surveillance process, as outlined in Article IV of its Articles of Agreement, which involves a comprehensive assessment of a member country’s economic and financial policies.

Also Read: IMF Announces End of Its Diagnostic Mission in Kenya

What Will the IMF Team Do in Kenya?

The fund stated that it remains committed to supporting Kenya as the country addresses its economic challenges.

“The IMF remains committed to supporting Kenya in its efforts to maintain macroeconomic stability, safeguard debt sustainability, strengthen governance, and promote inclusive and sustainable growth for the benefit of the Kenyan people,” Teferra noted.

During the 15-day mission, the team is expected to engage with government officials and with other stakeholders.

“We look forward to constructive engagement with the authorities and other stakeholders during our visit to Nairobi,” added the mission chief for Kenya.

However, the statement did not provide details on the possible structure of the program or the amount of financing that could be made available. However, it indicated that discussions would begin in the coming days. 

Earlier in August, Central Bank of Kenya (CBK) Governor Kamau Thugge, during a Monetary Policy Committee (MPC) briefing, said the government’s preference is for a funded program to support the country’s economic stability and ongoing reforms.

“We expect an IMF mission to start negotiations on a new program. We expect that the program will, when it is presented to the board, be discussed in conjunction with the Article IV consultation discussions.

“Our preference will be to have a funded program, and that is what we have expressed to the fund,” he said.

Also Read: IMF Audit Team in Kenya for 2 Weeks to Investigate Corruption

Earlier Diagnostic Visit to Kenya

In June, the fund’s technical assistance mission, led by Rebecca A. Sparkman, visited Kenya to conduct a Governance Diagnostic mission.

The intensive review aimed to identify corruption vulnerabilities and weaknesses in public financial management.

According to an official statement, the mission was requested by Kenyan authorities.

The audit focused on high-risk areas, including procurement, tax policy, revenue collection, public spending, mining, market regulation, Central Bank operations, financial oversight, and anti-money laundering systems.

Additionally, they met with government officials, members of Parliament, civil society representatives, business leaders, and development partners to gain a comprehensive understanding of Kenya’s governance challenges.

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