IMF Explores New Financial Pathway for Kenya

The International Monetary Fund (IMF) assessed Kenya's economic situation to discuss a potential new program after the expiration of the previous $3.6 billion deal. Key discussions focused on enhancing fiscal policy credibility, public finance sustainability, and minimizing risks. Continuing talks are set to occur at the upcoming IMF Annual Meetings.

The International Monetary Fund (IMF) acknowledged on Friday that its staff recently concluded a visit to Kenya to assess the country's macroeconomic status and discuss potential reforms for a new financial program.

A statement from the IMF emphasized the importance of priorities such as enhancing fiscal policy credibility, ensuring sustainable management of public finances and debt, and reducing fiscal, financial, and external sector risks. Discussions with Kenyan officials are set to continue during the forthcoming IMF Annual Meetings, the IMF added.

Kenya's previous $3.6 billion program with the IMF expired earlier this year. Some financial analysts and officials believe a new program with a loan component is necessary for Kenya to stabilize its external debt obligations.

(With inputs from agencies.)