Kenya in talks with IMF over new standby facility

Treasury Cabinet Secretary Henry Rotich. [Photo:File]

NAIROBI, KENYA: Kenya is discussing a new standby credit facility with the International Monetary Fund after the expiry of a previous programme last year, the institution’s representative to Nairobi said on Tuesday.

The $989.8 million arrangement expired last September after the government failed to meet the fund’s conditions for an extension, including the repeal of a cap on commercial lending.

“I can just confirm that discussions on a new programme are ongoing,” Jan Mikkelsen told Reuters without offering more details.

The government is preparing to issue a $2.5 billion Eurobond and analysts say it would get better interest rates if it secured the standby credit arrangement with the IMF before it goes to market.