The Central Bank of Kenya (CBK) Governor Kamau Thugge announced that Kenya will finance its Ksh987 billion borrowing requirement for the 2026/27 financial year without seeking new loans from the International Monetary Fund (IMF). This decision comes as the country’s foreign exchange reserves have increased, reducing the need for external financial support.
Thugge stated that the rising reserves have eased pressure on the country’s balance of payments, allowing the government to meet its financial obligations internally. The CBK’s Monetary Policy Committee has been closely monitoring economic indicators, including inflation and currency stability, to ensure the country remains on track for fiscal sustainability.
This marks a shift from previous years when Kenya relied on IMF support to cover budget shortfalls. The CBK has emphasized that the current economic conditions, including improved trade balances and increased foreign investment, have strengthened the country’s financial position. The government is now focusing on maintaining macroeconomic stability while promoting growth through domestic resources.
