Kenya IMF talks start as mission opens Nairobi visit

Thursday, 25th September 2025.

By inAfrika Newsroom.

Kenya IMF talks began today as a staff mission opened a two-week visit to Nairobi. The team will discuss a new support programme after Kenya requested fresh financing. The mission runs from Sept 25 to Oct 9. Officials said the goal is to steady the economy, protect vulnerable households, and anchor debt sustainability.

The International Monetary Fund named Haimanot Teferra as mission chief. She said the Fund wants to help Kenya maintain stability, meet obligations, and strengthen governance. Talks will cover fiscal plans, revenue, and steps to clear arrears. The sides will also review social protections and reforms in state-owned firms. Kenya IMF talks will test how fast Nairobi can deliver measures without inflaming public anger.

Kenya failed to complete the final review of its previous $3.6 billion IMF arrangement in March. That review would have unlocked about $800 million. It stalled after fiscal targets slipped and protests forced the government to drop new taxes. The authorities now seek a funded programme that can refinance obligations while markets remain tight.

The Treasury faces near-term cash demands and higher local yields. It must balance budget control with growth. Spending cuts risk slowing services. Weak cuts risk new financing stress. The central bank wants lower inflation and a stable shilling. Any agreement will set quarterly tests on revenue, borrowing, and reforms. A staff-level deal could follow if the numbers add up.

Business groups back a clear IMF track. They say predictable rules unlock credit and investment. Households want relief from prices and jobs that keep pace with costs. Unions warn against sudden levies or sharp subsidy withdrawals. The mission will weigh those trade-offs as it drafts conditions. Kenya’s cabinet will decide what to accept and how to sell it.

The visit also carries politics. Leaders argue the programme will cut risk and lower borrowing costs. Opponents call it austerity by another name. The outcome will hinge on revenue measures that pass parliament and on controls that stick. If talks hold, a new Kenya IMF talks framework could reach staff-level agreement before year-end, then move to the IMF Board.