Kenya and the International Monetary Fund (IMF) will discuss a new lending programme and abandon the current one, as the country struggles to get its economy back on track after a borrowing spree led to a surge in debt-servicing costs.

The current $3.6 billion, four-year program, signed in the wake of the Covid-19 pandemic that ravaged Kenya’s and other economies, ends on April 1. The expiry of the facility without the final disbursement will leave Kenya with a budget-financing gap.

Kenya and the IMF are discussing a new lending program after halting the current $3.6 billion loan review. The country needs continued support amidst high debt-servicing costs. A formal request for a new program has been made,

NAIROBI - The International Monetary Fund has received a formal request for a new programme from Kenyan authorities and will engage with them going forward, it said on Monday. Read more at straitstimes.