The International Monetary Fund (IMF) is preparing to send a team to Kenya in 2025 to assist the government with implementing governance reforms.

This was confirmed by IMF Deputy Managing Director Nigel Clarke during his visit to Kenya.

He met with President William Ruto, National Treasury Cabinet Secretary, and the Central Bank Governor.

Clarke shared that the Kenyan government requested IMF’s help in conducting a governance diagnostic.

He emphasized that the IMF’s role will be to offer advice based on the country’s economic environment, but the responsibility for specific decisions lies with Kenya’s authorities.

This came in response to recent criticism that the IMF was influencing Kenya’s aggressive tax measures.

Clarke firmly stated, “Specific revenue measures are not the design of the IMF,” pointing out that such decisions are solely within the Kenyan government’s control.

Addressing concerns about IMF’s involvement with Kenya’s financial matters, Clarke also explained why the institution reduced its disbursement to Kenya in November during the 7th and 8th reviews.

He noted that the government’s successful Eurobond issuance earlier in the year had reduced Kenya’s balance of payment needs, leading to a smaller disbursement from the IMF.

Additionally, the IMF urged the Kenyan government to be cautious about taking on more loans.

Clarke highlighted that any new loans should align with a comprehensive fiscal strategy that reduces Kenya’s debt vulnerability and ensures long-term fiscal sustainability.

“Kenya’s budgetary arrangements should not rely on increasing debt levels,” he said.

While the IMF will assist with governance diagnostics, Clarke stressed that the process is not a quick fix.

The diagnostics will provide a roadmap for reforms but will not resolve all of Kenya’s governance challenges.