Kenya is set to initiate talks on a new deal with the International Monetary Fund (IMF) after failing to meet the requirements of an initial agreement due to debt settlement challenges.
Reports indicate that the country is struggling to get its economy back on track after a borrowing spree led to a surge in debt-servicing costs. Kenya now requires consistent financial support from the Fund to keep up with debt repayments that have accumulated as a result of heavy government spending in recent years.
IMF’s mission chief, Haimanot Teferra, who recently visited the East African country, confirmed that the ninth review of the initial deal will not take place as both parties prepare to commence talks on a new agreement.
“The IMF has received a formal request for a new program from the Kenyan authorities and will engage with them going forward,” he confirmed.
