Negotiations between Kenya and the International Monetary Fund (IMF) on a new financial assistance program have reached an impasse, Finance Minister John Mbadi announced on Monday, November 3, 2025.
Speaking at a press briefing in Nairobi, Mbadi said the deadlock centers on how to classify securitized loans used to fund infrastructure projects.
“The IMF wants these securitized loans to be categorized as sovereign debt, but we disagree with that position,” Mbadi explained, adding that further discussions would be held to resolve the issue, though no date has been set.
Kenya is seeking a fresh bailout package from the IMF following the expiration of its previous $3.6 billion program in April. The East African nation also plans to raise $1.3 billion through a bond issuance later this month to support its financing needs.
In October, the government successfully renegotiated repayment terms on a $5 billion loan from China—originally used to construct the standard gauge railway, saving the Treasury millions in interest costs.
As of March, Kenya’s total external debt stood at $40.5 billion, with $14.4 billion owed to the World Bank, $7.52 billion to eurobond investors, and nearly $5.04 billion to China, according to Treasury data.
The ongoing talks with the IMF are seen as crucial for stabilizing Kenya’s fiscal outlook and maintaining investor confidence amid growing debt pressures.
