Kenya Negotiates New IMF Deal Amid Debt Dilemma

Kenya and the IMF are in discussions to establish a new support program following the end of a prior $3.6 billion deal. Challenges include the classification of securitised loans as sovereign debt. President Ruto juggles a heavy debt load with ambitious infrastructure projects while negotiating financial terms with the IMF.

Kenya's push to secure a new International Monetary Fund (IMF) support program continues as Finance Minister John Mbadi announced further talks to overcome key obstacles. The East African nation is seeking assistance following the expiration of a previous $3.6 billion deal in April.

Discussions in Washington, after an IMF mission to Nairobi, revolve around whether loans funding infrastructure should be classified as sovereign debt. President William Ruto, facing a heavily indebted economy, has turned to securitisation to manage finances, despite the IMF's differing viewpoint.

The government aims to issue a bond to fund infrastructure projects like road and airport expansions. While many analysts emphasize the importance of an IMF deal for debt repayments, Mbadi indicated current budgets do not rely on IMF funding.

(With inputs from agencies.)