The International Monetary Fund (IMF) Deputy Managing (MD) Director Nigel Clarke is expected to visit Kenya on December 9 to 10, the fund has announced.
The visit which will see Mr Clarke meet with local authorities as part of continued engagements between the multilateral lender and Kenya, comes in the backdrop of the completion of the seventh and eight reviews of a multi-year programme signed off in April 2021.
The fund recently disbursed Sh78.5 billion ($606.1 million) to Kenya following the two reviews, delayed previously by concerns on revenue performance following the withdrawal of the Finance Bill, 2024.
Director of the Communications at the IMF Julie Kozack said the fund would be providing more details on the trip in subsequent communication.
“Deputy MD-Clarke will travel to Nairobi, Kenya, on December 9 and 10 as part of our ongoing engagements with Kenya. During his visit, he will meet with the authorities and other key stakeholders, and we’ll provide more updates on this trip as they become available,” Ms Kozack said in a press briefing on Thursday.
The IMF disbursement to Kenya earlier this month was underpinned on expenditure reducing measures in Kenya’s first 2024/25 supplementary budget, and recently proposed tax measures, which when combined, are expected to cover revenue shortfalls from the Finance Bill rejection.
The fund excused Kenya from missed revenue targets in the fiscal year ended June 2024, despite it being a quantitative performance criterion (QPC) for the seventh and eighth reviews.
Kenya expects a final disbursement from the IMF at the end of the ninth review of the programme, in April next year.
Both Kenya and the IMF are expected to hold discussions on future engagement beyond the multi-year programme, with the former noting its eagerness to extend ties on continued access to concessional funding.
The multi-year deal comprising the extended credit facility (ECF) and the extended fund facility (EFF) programmes cannot be extended beyond April 2025 according to the fund.
IMF Mission Chief to Kenya Haimanot Teferra said in a previous interview that the fund and Kenya, could opt to structure a precautionary facility which would cover unexpected external shocks.
Kenya would nevertheless be required to clear all its outstanding balance of payment needs which are defined as outsized external payments.
“Kenyan authorities have indicated that they would want to continue engaging the fund. In what form? That decision will have to come later as we assess the situation. Whether we go with new funding or a precautionary arrangement, the country cannot have a present balance of payment needs and would have to mobilise resources from others to settle the need. The likelihood of a precautionary facility would be very limited without that,” she noted.
Prior to the ECF and EFF arrangements, Kenya had accessed precautionary facilities from the fund including a standby arrangement (SBA) and a standby credit facility (SCF).
Former Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge likened the precautionary facilities to holding an insurance policy.
Visiting IMF officials routinely hold meetings with key fiscal and monetary heads including the National Treasury Cabinet Secretary and the CBK Governor.
