IMF, Kenya : Clicking the Reset Button

Howdy! It's Brian from The Kenyan Wall Street. We explain why Kenya wanted the IMF to drop the ninth review of its 2021 programme. Also check out for more stories in today's edition of the newsletter…

IMF, Kenya : Clicking the Reset Button

The IMF programme came with sour terms—and last year's June protests against the Finance Bill 2024 saw rioters heap blame on the institution for the country's descent into hardship.

Kenya is shaking up its IMF relationship, asking the international lender to ditch the ninth review of its existing KSh 460 billion programme and replace it with a fresh deal. This move comes as Kenya grapples with rising fiscal pressure and increasing debt obligations. While the IMF has acknowledged the request, the details of the new deal, such as flexible terms or extended repayment periods, remain unclear. The government’s efforts to stabilize public finances are complicated by the ongoing public backlash over austerity measures and new taxes tied to the current program. With the IMF deal set to expire in April, the shape of the next agreement will be crucial for Kenya’s economic future. Here's what's up»»»»»

Today's Poll 

⏱️ Rewind

• Kenya’s economic growth, as measured by Real GDP growth, will slow down from 5.6% in 2023 to 5.0% in 2024 and 2025 respectively, the International Monetary Fund has predicted in its latest economic outlook report.

USAID Suspension: The Bloodbath continues

Mercy Corps Kenya is scrambling to settle vendor payments as USAID funding vanishes, signaling a rough road ahead for NGOs. Vendors have until the end of March to get their invoices in, or they can kiss their payments goodbye. The Trump administration, which is not a fan of foreign aid, halted the USAID spigots after taking office in late January. Kenya, like many other developing nations was caught in the crossfire—with NGOs from all sectors anticipating budget cuts and massive layoffs. The government has been left juggling finances, desperately hoping domestic revenue can save the day. Read more »»»»»

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Insights : Crypto Liquidity in Africa

African businesses hope for a world where money moves instantly, without delays, hidden fees, or unreliable exchange rates. This is the promise of cryptocurrency, but for businesses to fully benefit from it, crypto liquidity needs to be strong. Continue reading»»»»»

More Stories:

• Insurance. Diana Nduku Mumo has been appointed interim liquidator of Xplico Insurance, marking a significant step in the troubled insurer’s long-running financial woes.

• Infrastructure. Ethiopia is taking a major step toward its ambitious goal of becoming Africa’s leading aviation hub after signing an agreement with the African Development Bank (AfDB) to support the construction of a new US $7.8 billion international airport.

• Taxation. The Kenya Revenue Authority (KRA) has established trade facilitation centers in Kainuk, Lodwar, and Kakuma to spur activities along the Northern Corridor, a critical trade route linking Kenya with South Sudan, Ethiopia, and Uganda.

• Tech. Safaricom wins court battle against developer who claimed ownership of the Reversal Call Feature. Here is more info…

Any company, any size, and in any industry can enter for a chance to be recognized by The Kenyan Wall Street’s Best Places to Work 2025 awards. The survey completion for the 2025 Awards is required by midnight on Friday, 26th September. Participate here»»»»»

Last Friday's Poll Results

Do you agree with ABSA's research that the CBK will cut rates to 9% by the end of this year?

🟩🟩🟩🟩🟩🟩 Yes (66.67%)

🟨🟨🟨⬜️⬜️⬜️ No (33.33%)