Kenya Seeks Fresh IMF Support Amid Debt Challenges

Kenya and the IMF have agreed to discuss a new lending program, forgoing the ninth review of the current $3.6 billion loan. Kenya's economy is under strain with high debt servicing costs. The existing program is set to expire, and new financial strategies are in demand.

Kenya and the International Monetary Fund (IMF) have decided to negotiate a new lending program for the country, opting against the ninth review of an ongoing $3.6 billion loan. Kenya's economy is currently grappling with high debt-servicing costs after excessive borrowing over the past decade.

In a statement from Nairobi, Haimanot Teferra, the IMF's mission chief, announced that an understanding was reached with Kenyan authorities to forgo the ninth review under the existing Extended Fund Facility and Extended Credit Facility programs.

Finance Minister John Mbadi confirmed that the government is actively seeking new financing arrangements. Last year saw financial turmoil fueled by anti-tax protests and disputes over new borrowing from the UAE. Kenya's debt-to-GDP ratio stood at 65.7% as of June, exceeding sustainable levels.

(With inputs from agencies.)