Kenyans are preparing for more economic hardship as the International Monetary Fund (IMF) signals a return to strict austerity measures — the same policies that previously triggered deadly protests, especially among the youth.
The IMF is expected to push for major reductions in government spending, which could lead to public sector job cuts and worsen the country’s already high unemployment rate.
Central Bank of Kenya Governor Kamau Thugge confirmed that the government is in talks with the IMF to secure a new financial arrangement. An IMF delegation is expected to visit in September to begin formal discussions under an Article IV review.
“Yes, we are in discussions with the IMF, and the government has officially requested to start negotiations on a new deal,” Dr. Thugge said during a press briefing after the Monetary Policy Committee meeting in Nairobi.
These talks come just two months after President Ruto’s administration ended a $2.3 billion (Sh301 billion) IMF programme. That decision was prompted by Kenya’s failure to meet key performance goals under the IMF’s previous Extended Fund Facility (EFF) and Extended Credit Facility (ECF), which led to the loss of Sh110 billion in anticipated funding.
