IMF Halts Kenya’s New Loan Talks Amid Pending Corruption Report
Kenya’s negotiations with the International Monetary Fund (IMF) for a new funding package have been halted while the government awaits a response on the lender’s governance and corruption evaluation.
According to Reuters, the IMF stated that it has shared a draft of its governance diagnostic assessment with the Kenyan government and is awaiting official comments before finalising the report.
“The IMF shared the draft Governance Diagnostic Assessment with the Kenyan authorities and is awaiting their comments,” the lender told the publication on Thursday, June 25.
The report aimed to identify governance flaws and corruption risks that have harmed the country’s economy and recommend essential reforms.
Kenya’s talks with the International Monetary Fund (IMF) for a new loan programme have been put on hold as the lender waits for the government’s response to a draft governance and corruption assessment.
The report identifies governance gaps and corruption risks affecting the… pic.twitter.com/mwudPMWH7f— Eagle News Feed (@eagle_feed) June 26, 2026
However, the Bretton Woods Institution stated that the study will only be released with the approval of President William Ruto’s administration.
This means that negotiations for Kenya’s next IMF programme remain incomplete months after the country exited its previous multi-billion-shilling funding arrangement.
The lender also said it is discussing the timing for the next annual visit, also known as the Article IV consultation on the state of the Kenyan economy’s health.
Kenya had begun discussions with the lender for a new programme following the premature end of its previous IMF facility, whose final review was abandoned early in 2025.
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Treasury Cabinet Secretary John Mbadi and Central Bank of Kenya Governor Kamau Thugge have previously confirmed that Kenya is negotiating a new programme to grant Kenya a new loan facility.
The governance and corruption assessment, which is now at the centre of the ongoing negotiations, began last year after Kenya formally requested IMF technical assistance.
According to an IMF statement released on July 1, 2025, the Fund conducted a governance diagnostic mission in Kenya between June 16 and June 30, 2025.
The exercise examined governance across several critical sectors, including public procurement, public financial management, tax administration, mining, market regulation, Central Bank governance and anti-money laundering measures.
The lender has now confirmed that the draft has been handed to the Kenyan government for review, marking one of the final stages before the assessment can be published.
IMF Halts Kenya’s New Loan Talks Amid Pending Corruption Report
