LAST WEEK IN AFRICA: Kenya Seeks New IMF Deal & Sets Debt Reduction Target

Written By Jamila Saad

Kenya Seeks New IMF Lending Programme
Kenya has applied for a new lending programme from the International Monetary Fund (IMF) to incorporate approximately $800 million in unused funds from its existing arrangement. This follows an agreement to terminate the ninth and final review of the current programme due to time constraints. The move highlights Kenya's efforts to manage its finances amid rising debt servicing costs.

Kenya Targets Debt-to-GDP Ratio of 52.8% by 2027/28
Kenya's government aims to reduce its total debt-to-GDP ratio to 52.8% by the 2027/28 financial year, down from the current 58.1%. Finance Minister John Mbadi stated that this target seeks to bring the ratio within the required threshold of 55% of economic output, addressing concerns over high debt service costs and upcoming maturities.

Africa is full of potential and transformation. It’s exciting to see such impactful movements shaping the future of the continent.

Jamila Saad
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