Kenya canceling its final IMF review may delay $800M from World Bank and $1.5B from UAE in early 2025, despite $10B FX reserves. New IMF loan sought.
Kenya’s choice to skip the final review of its $3.6 billion International Monetary Fund (IMF) loan programme has triggered concerns over delays in additional funding from the World Bank and the United Arab Emirates (UAE). According to a recent S&P Global report, the move could hinder the release of $800 million from the World Bank and $1.5 billion from the UAE in the first half of 2025.
📌 Internal link: Understanding Kenya’s relationship with the IMF
📌 Internal link: Why IMF programs attract other lenders
📉 What Led to the Cancelled Review?
Kenya’s IMF program, launched in 2021, was designed to improve fiscal sustainability and enact structural reforms. However, the ninth and final review, scheduled for early 2025, was mutually dropped due to time constraints. This decision left nearly $800 million undisbursed.
“There were no unmet targets; we simply ran out of time,” said Finance Minister John Mbadi.
📌 Internal link: Key takeaways from Kenya’s IMF reform targets
💸 What Are the Implications?
IMF programs often act as confidence signals to other development partners. S&P Global says the absence of the final IMF stamp may delay:
- World Bank funding: ~$800 million
- UAE bilateral support: ~$1.5 billion
Despite this, Kenya holds $10 billion in foreign exchange reserves, offering a temporary buffer for debt obligations. However, it may face higher borrowing costs if funding delays persist.
📌 Internal link: How Kenya manages FX reserves amid loan delays
🏛️ Government Reactions & Next Steps
Finance Minister Mbadi has confirmed Kenya has applied for a new IMF programme that will also include the unused funds from the cancelled review. The new application reflects Kenya’s intent to maintain reform momentum and restore global lender confidence.
“We are fully committed to fiscal and structural reforms,” Mbadi assured.
📌 Internal link: New IMF deal: What it could mean for Kenya
📌 Internal link: Mbadi’s fiscal roadmap for 2025
🔮 Outlook for 2025 and Beyond
Analysts say the success of the new IMF application will determine the timing of critical funds, especially from the World Bank and UAE partners. In the meantime, Kenya’s resilient FX reserves and domestic revenue efforts may help navigate short-term pressure.
📌 Internal link: Kenya’s revenue growth targets for FY2025
📌 Internal link: Regional outlook: How East African economies are adapting
