KENYA REQUEST TALKS WITH IMF ON NEW LENDING PROGRAMME

The International Monetary Fund (IMF) says it has received a formal request from Kenya for talks on a new lending deal.

This comes after both sides abandoned the ninth review of current $3.6 billion loan programme. The authorities in Nairobi are now contending with rising debt servicing costs.

The East African needs continued support to keep its economy on track after its debt-servicing costs surged due to excessive borrowing over the past decade.

IMF mission chief, Mainanot Teferra, disclosed in a statement at the end of a visit to Nairobi saying that "The Kenyan authorities and IMF staff have reached an understanding that the ninth review under the current Extended Fund Facility and Extended Credit Facility programs will not proceed,".

Reports indicate that the current programme began in April 2021 and was due to expire next month. However, its implementation was hampered by deadly anti-tax hike protests last year and a row over new borrowing from the United Arab Emirates.