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IMF Deputy Director discusses Kenya’s path to economic stability after 2-day visit

Clarke engaged in discussions with President William Ruto, Cabinet Secretary for National Treasury and Economic Planning John Mbadi, and Central Bank Governor Dr Kamau Thugge, along with other top government officials.
IMF Deputy Director Nigel Clarke and President William Ruto
IMF Deputy Director Nigel Clarke and President William Ruto

Nigel Clarke, Deputy Managing Director of the International Monetary Fund (IMF), wrapped up his maiden visit to Kenya on 10 December 2024.

During his three-day visit, Clarke commended the Kenyan authorities and citizens for their warm reception and expressed appreciation for the opportunity to engage with diverse stakeholders in the country.

I want to express my deep appreciation to the Kenyan authorities and Kenyan people for their incredible hospitality during my first visit to Kenya as IMF Deputy Managing Director.

Engagement with leaders and key stakeholders

Clarke held discussions with President William Ruto, National Treasury and Economic Planning Cabinet Secretary John Mbadi, and Central Bank Governor Dr Kamau Thugge, among other senior government officials.

He also interacted with representatives from the Kenyan Parliament, civil society, business community, financial sector, and development partners.

IMF Deputy Director Nigel Clarke during his visit to Kenya

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The Deputy Managing Director acknowledged the open and vibrant dialogue during his visit, which provided him with a deeper understanding of Kenya’s economic challenges and the role of IMF programmes in addressing them.

I was encouraged by the determination and commitment of everyone I met with to support efforts to unlock Kenya’s economic potential.

Support for Kenya’s reform agenda

Clarke highlighted the progress achieved under Kenya’s reform agenda, which has been bolstered by IMF-supported initiatives such as the Extended Fund Facility (EFF), Extended Credit Facility (ECF), and the Resilience and Sustainability Facility (RSF).

These programmes have contributed to enhancing Kenya’s resilience to economic and climate shocks.

Nigel Clarke with the team from IMF in talks with President William Ruto and other government officials during his visit to Kenya

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However, he cautioned that challenges remain, particularly in reducing debt vulnerabilities and strengthening the fiscal framework.

The Kenyan authorities face a difficult balancing act of fulfilling the aspirations of the Kenyan people by delivering on priority social and developmental needs even as debt servicing obligations consume a large share of government’s revenues.

Encouragement for continued reforms

Clarke urged the government to continue creating fiscal space for critical investments, such as in human capital and social spending, while ensuring revenues are managed with transparency and accountability.

He emphasised the importance of strengthening governance, public financial management, and anti-corruption frameworks.

Nigel Clarke with the team from IMF in talks with President William Ruto and other government officials during his visit to Kenya

A promising outlook for Kenya

Reflecting on his visit, Clarke expressed optimism about Kenya’s economic prospects. “My visit has been incredibly rewarding in getting a first-hand appreciation of Kenya’s prospects and challenges,” he concluded, extending his best wishes to the people and government of Kenya.

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