Government Seeks New IMF Funding Ahead of EPRA Fuel Price Review

By Ken Muthomi - Reporter

Kenya, 11 May 2026 - The government is seeking a new funding agreement with the International Monetary Fund (IMF) to help cushion the country against the economic shock linked to the Middle East tension and the rising global fuel prices.

Speaking on Monday, Treasury Cabinet Secretary John Mbadi said that if the plans succeed, the new programme could see the international lender provide KSh 100 billion (around $774 million) to Kenya.

The funds will specifically be used to address pressing issues such as the high fuel prices, inflation concerns, and pressure on imports since the country relies heavily on oil from the Middle East.

The funding will be vital, especially after the international lender downgraded Kenya’s growth forecast from 4.9% to 4.5% attributing the revision to inflation and geopolitical risks linked to the Iran conflict.

The latest development comes at a time when the country is seeking more financing channels in a bid to stabilise the country’s economy amid the U.S, Israel conflict with Iran.

Barely a month ago, the Central Bank of Kenya Governor Kamau Thugge confirmed that the government is also in talks with the World Bank for financial support under the Rapid Response Support programme to stabilise fuel prices.

Despite not revealing the exact amount the country is seeking, Thugge, who revealed this during the sidelines of the IMF-World Bank Spring Meetings in the United States in April, described the amount as ‘significant.’

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Rapid Response Support is an umbrella term for the World Bank's fast-disbursing financial windows and policy tools designed to help countries respond immediately to sudden shocks or crises.

This support allows governments to manage the social and economic impact of emergencies, such as natural disasters, health shocks, or conflicts, by providing quick access to liquidity, within days rather than months.

Kenyans remain hopeful that the recent efforts by the government to stabilise fuel prices will bear fruit ahead of the highly anticipated Energy and Petroleum Regulatory Authority (EPRA) review this week.