NAIROBI – Kenya is preparing follow-up discussions with the International Monetary Fund (IMF) as it seeks to secure a new financing programme, Finance Minister John Mbadi said on Tuesday. He expressed confidence that both sides will reach a consensus on how to classify the country’s securitised debt.
The East African nation, facing rising debt levels, has turned to securitisation of revenues and borrowing against future income as part of its effort to finance infrastructure projects without taking on additional conventional debt.
Mbadi said the government views this approach as a way to avoid further debt accumulation but noted that the IMF wants such borrowing treated as standard debt.
“We are confident we will come to an agreement,” he said, adding that Kenya remains committed to working closely with the Fund.
Kenya’s $3.6 billion IMF programme expired earlier this year. Government officials have since indicated interest in negotiating a new arrangement that includes a lending component.
Several financial analysts have said that a new IMF loan deal could help anchor Kenya’s external debt repayments and strengthen investor confidence in its economic management.
