Nairobi, Kenya – Treasury Cabinet Secretary John Mbadi has confirmed that Kenya and the International Monetary Fund (IMF) have not yet reached an agreement on a new loan programme, clarifying that discussions are ongoing.
Speaking at a media briefing with business journalists in Nairobi, the CS also firmly dismissed concerns about the stability of the Kenyan shilling, attributing its current strength to solid economic fundamentals and deliberate government interventions rather than market speculation.
What is the current status of Kenya-IMF talks?
Mbadi outlined the status of the IMF negotiations, which began after Kenya requested a new programme following the termination of the previous one in March 2025.
“There is usually a process. As a country, we are the ones who request. Then, after that, they come and do the initial fact-finding. So, they were here up to October 7, 2025…during which time we had extensive engagements,” Mbadi explained.
He noted that IMF staff are currently conducting sustainability analyses based on revised data, which now more accurately capture sectors such as tourism and petroleum re-exports.
“Following meetings in Washington, there will be a follow-up meeting before we have the final discussion about when we are starting,” he said.
Importantly, Mbadi assured that any potential funds from the new programme are not included in the current budget.
“If it comes, it will be a windfall for us,” he said, suggesting such funds would be used to reduce other domestic or external loans.
CS Mbadi also addressed discussions on securitisation, clarifying that the IMF supports the practice but differs on its accounting treatment.
“Their concern was on the treatment – whether we should record it as sovereign debt or not. The government believes the risk is transferred and it should not be treated as debt, but whichever way, we agree,” Mbadi said.
Kenyan shilling stability “has a basis”
Responding to a question from News Nine about concerns over the stability of the Kenyan shilling, Mbadi was emphatic that the shilling’s stability has “never been any discussion point in their formal engagements with the IMF.
The CS disputed recent reports that the international lender had raised concerns about the stability of the Kenyan shilling in the forex market against the US dollar, which has been losing value.
“The stability of the shilling is well-founded. The shilling is stable because of the interventions and the measures we have taken at both the National Treasury and the Central Bank to stabilise our currency,” he explained.
Why the Kenyan shilling remains stable
Mbadi outlined several factors underpinning the currency’s strength, including an improved current account balance driven by better export performance and a significant rise in tourism numbers.
He also cited strong diaspora remittances, with the US leading inflows, and reduced demand for US dollars as key stabilising forces.
“We reduced pressure on the dollar by changing the policy on petroleum importation. We no longer need dollars to import petroleum in this country,” Mbadi stated, referencing the government-to-government oil import deal.
Furthermore, he said reduced imports of cereals and sugar, thanks to government fertiliser subsidies and improved local production, have eased foreign exchange pressure.
Mbadi highlighted proactive liability management, including handling the 2027 Eurobond, which he said sent a positive signal to international markets.
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