IMF Explains Why Kenya Will Continue Borrowing
Kenya recently commenced talks with the IMF over a new loan...
✨ Key Highlights
The International Monetary Fund (IMF) states that African nations, including Kenya, will continue to seek loans due to high debt burdens and a scarcity of cheaper financing options. The IMF has provided nearly $69 billion (Ksh8.9 trillion) to the region since 2020 as overall African external debt climbed to over $650 billion (Ksh83.9 trillion).
- Kenya is currently in talks for a new financing program after abandoning the final disbursement of approximately $850 million (Ksh109.9 billion) from its previous $3.6 billion (Ksh465 billion) IMF programme.
- African leaders view IMF support as a financial backstop and a strategic tool to unlock broader funding options.
- Kenya's public debt stands at Ksh11 trillion, with Ksh5.09 trillion in external debt, and its debt level is 63 percent of its GDP.
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Scrutiny on Kenya's Debt, Idle Embassy Funds, and KRA System - September 2025
The International Monetary Fund (IMF) explained that nations like Kenya will continue borrowing due to high debt burdens and a lack of cheaper financing, noting it has provided nearly $69 billion to the region since 2020. Separately, Kenyan Members of Parliament have raised concerns over Ksh1.8 billion in unutilized funds at Kenya's embassies in the United States, the United Kingdom, and Ethiopia. The Public Accounts Committee (PAC) summoned the Foreign Affairs Principal Secretary to explain these balances. In another development affecting national revenue, the Kenya Revenue Authority (KRA) announced an 8-hour scheduled maintenance for its Integrated Customs Management System (iCMS) for the upcoming weekend.
