The International Monetary Fund is set to review its $2.4bn loan programme for Kenya in light of recent political upheaval, including President William Ruto’s dismissal of several cabinet members and the withdrawal of a contentious finance bill.
Julie Kozack, IMF spokesperson, said on Thursday that the fund would use its regular programme reviews to “assess developments and make adjustments considering the evolving circumstances” in the east African nation.
The review comes at a critical juncture for Kenya, which was expecting about $976m in external funding from the IMF for fiscal year 2025, accounting for roughly one-third of the government’s budgeted net external financing.
Last week, President Ruto discussed the implications of the Finance Bill’s withdrawal with IMF chief Kristalina Georgieva. Sources close to the matter suggest that while Kenya may miss key programme targets, major donors are advocating for flexibility from the fund.
In return for this leniency, Ruto is under pressure to demonstrate commitment to fiscal prudence, anti-corruption measures, and enhanced accountability.
The IMF expressed concern over recent demonstrations in Kenya, which have resulted in fatalities. The fund pledged ongoing dialogue with Ruto’s administration to support the country through its economic challenges.
