(Bloomberg) -- The International Monetary Fund’s executive board will consider the next disbursement in Kenya’s $3.9 billion loan program at a meeting scheduled to take place on Oct. 30, according to people familiar with the matter.
The conclusion of the seventh review of Kenya’s performance under the program is key to unlocking about $600 million. While IMF staff reached a deal with government officials on the next portion of funding in June, talks had to restart after anti-government protests linked to program reforms left at least 60 people dead.
Kenya is at high risk of debt distress and has sought IMF assistance to address that vulnerability. It expects to receive a total of $1 billion from the lender by the end of June 2025.
IMF representatives have confirmed to the Kenyan authorities that the board will be meeting on Oct. 30, said one of the people who asked not to be identified because the talks are private. Another person said that the agenda item is scheduled as tentative.
Talks Ongoing
An IMF spokesperson said no date has been confirmed yet for the board’s deliberation and “discussions are still ongoing to assess the impact from and address recent fiscal developments, including the implications of recent court orders.”
Kenyan Treasury Principal Secretary Chris Kiptoo didn’t respond to a request for comment.
The review will also include the completion of the second review of a climate-financing program for Kenya, under a so-called resilience and sustainability facility.
The IMF review and payments were thrown off schedule when Kenyans took to the streets in June to protest against proposed taxes on everything from bread to diapers. The demonstrations forced the government to drop the revenue measures and widen its budget-deficit estimates.
‘Evolving Circumstances’
The IMF said in August that “at every program review, we assess developments and make adjustments considering the evolving circumstances,” according to a statement on its website.
An IMF staff team traveled to Kenya in September to gauge the economic impact of the decision to abandon the tax measures.
Kenyan central bank Governor Kamau Thugge on Oct. 9 said that the authorities are “in the final stages” of an agreement with the IMF, and that the lender is combining its seventh and eighth reviews of the Kenyan program.
The eighth review of the program had originally been scheduled for end-October, according to an IMF country report from January. The ninth and last review of the loan is scheduled for March.
--With assistance from Eric Martin.
(Updates with IMF comment in fifth paragraph.)
©2024 Bloomberg L.P.