adminKenya has started talks with the International Monetary Fund (IMF) and other development financial institutions for a new loan to help it settle the $2.0 billion (Ksh297.6 billion) Eurobond whose repayment is due in June 2024.
The government is leaning to the multilateral institutions following tightness in the global markets which has rendered the issuance of fresh debt to refinance maturing debt an improbable route to settle the maturity which is eight months away.
IMF’s Deputy Director for Africa Catherine Pattillo told the Business Daily that the request for additional financing and the amount Kenya is seeking will be a key item during the upcoming review mission expected in December.
Kenya has so far tapped US$2,1 billion (Ksh312,5 billion) from the ongoing programme with the IMF including the second largest drawdown of US$410 million (Ksh61 billion) that was approved by the Fund’s executive board following the conclusion of the fifth review mid this year. The fund extended Kenya’s programme by 10 months to lapse in April 2025.
“For Kenya, the authorities are steadfastly addressing this and collaborating with us in the IMF, the World Bank and other donors to further strengthen their economic programme which they have been very much committed to and they are working to secure additional funding while implementing fiscal measures to address some of the funding requirements,” Pattillo says.
“Working with us, we will have an upcoming review mission and the team will be in dialogue with the authorities and other donors to continue to develop a programme that’s going to help implement those reforms.
Those reforms are intended both to reduce debt vulnerabilities and ultimately help Kenya in regaining access to the markets,” the IMF official says. – The East African
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