IMF awaits Kenya’s response to governance assessment as programme talks continue

The International Monetary Fund (IMF) has shared a draft governance diagnostic assessment with the Kenyan government and is awaiting its feedback, a step that could help pave the way for negotiations on a new IMF-supported economic programme.

The Fund said on Thursday that the assessment, which examines governance shortcomings and vulnerabilities to corruption, had been submitted to Kenyan authorities for review. The report will only be published with the government’s consent.

The governance diagnostic is intended to identify institutional weaknesses that could undermine economic performance and public financial management, while recommending reforms to strengthen transparency, accountability and anti-corruption measures.

The IMF said comments from the Kenyan government could help advance discussions on a new lending arrangement following the expiry of the country’s previous programme.

The Washington-based lender also said it was consulting with Kenyan authorities on the timing of its next Article IV consultation, the IMF’s regular assessment of a member country’s economic policies and financial health.

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The consultations come after the final review of Kenya’s previous IMF-supported programme was discontinued in early 2025 before completion.

Kenya has relied on IMF financial support in recent years to help stabilise its economy, strengthen public finances and implement structural reforms amid high debt-servicing costs, inflationary pressures and fiscal challenges.

Any new programme is expected to focus on restoring fiscal sustainability, improving governance, enhancing revenue mobilisation and supporting long-term economic growth.

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The governance assessment is regarded as an important component of the IMF’s broader engagement with Kenya, particularly as international lenders increasingly emphasise transparency and institutional reforms alongside macroeconomic policy measures.

The IMF did not indicate when the Kenyan government is expected to respond to the draft assessment or when discussions on a new programme could conclude.