IMF Staff Country Reports

Kenya: 2023 Article IV Consultation-Sixth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Augmentations of Access, Modification of Performance Criteria, Waiver of Nonobservance of Performance Criteria, Waiver of Applicability of Performance Criteria, and First Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya

Publication Date:

January 17, 2024

Electronic Access:

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Summary:

The Kenyan economy remains resilient amid a confluence of global, regional, environmental, and domestic political risks. These factors, including costly and uncertain international bond market access for frontier market economies in an environment of “higher for longer” global interest rates, are adding to Kenya’s balance of payments and fiscal financing needs despite policy efforts to sustain domestic and external balances. The authorities’ EFF/ECF-supported program, approved in April 2021 and extended by 10 months in July 2023 to April 2025, continues to evolve to address the emerging challenges, including to restore market confidence while incorporating additional policy actions to reduce debt vulnerabilities, a key objective of the program. The program also endeavors to bolster Kenya’s medium-term prospects by enhancing fiscal risk management, strengthening external buffers, and improving the governance framework.

Series:

Country Report No. 2024/013

Subject:

Credit Debt sustainability analysis External debt International organization Monetary policy Money Public debt Revenue administration

Frequency:

regular