Kenya Engages with IMF for New Financial Pathways Amid Securitisation Debate

Kenya is in discussions with the IMF to secure a new financial programme, addressing disagreements over classifying securitised debt. Finance Minister John Mbadi is optimistic about reaching an agreement, crucial for funding infrastructure without accumulating extra debt. The country's previous $3.6 billion IMF programme expired recently.

Kenya is set to engage in further discussions with the International Monetary Fund (IMF) to establish a new financial programme, Finance Minister John Mbadi announced on Tuesday. This comes as the government actively seeks solutions to fund infrastructure initiatives amid escalating debt levels.

The East African nation has resorted to securitising certain revenue streams and borrowing against them to avoid additional debt accumulation. However, the IMF insists these borrowings should be classified as standard debt. Mbadi expressed confidence that both parties would reach a mutual understanding on this issue.

Kenya's previous $3.6 billion agreement with the IMF concluded earlier this year. Officials are keen on a new arrangement that includes a lending aspect to support Kenya's external debt repayments, highlighting the need for enhanced financial stability.