The Kenya Kwanza administration has abruptly terminated its existing Sh301 billion International Monetary Fund (IMF) programme, a move that offers temporary relief from immediate tax increases but raises concerns about the country’s fiscal discipline.  

This decision coincides with President William Ruto’s newly reorganised government, seeking a new financial arrangement with the IMF, fully aware that any new programme will be a crucial test amid escalating living costs and the potential for social unrest. 

The IMF confirmed that the ninth review of Kenya’s Extended Fund Facility and Extended Credit Facility programmes will not proceed, having received a formal request for a new programme from Kenyan authorities.