US–Israel–Iran Conflict Dominates IMF Talks With Kenya During Visit
An IMF delegation from Washington, led by Haimanot Teferra, was in the country between February 24 and March 4, 2026, to hold consultations with Kenyan officials on recent economic developments both locally and globally
By : Mweru Mbugua
Discussions between Kenya and the International Monetary Fund (IMF) during a recent visit to Nairobi were largely dominated by concerns over the escalating conflict in the Middle East involving the United States, Israel, and Iran
An IMF delegation from Washington, led by Haimanot Teferra, was in the country between February 24 and March 4, 2026, to hold consultations with Kenyan officials on recent economic developments both locally and globally
According to the National Treasury, the crisis in the Middle East featured prominently in the discussions due to its potential economic impact on Kenya. The IMF team warned that the conflict could expose Kenya to external shocks, urging the government to strengthen fiscal discipline and improve governance to maintain economic stability
The talks were led on the Kenyan side by Treasury Cabinet Secretary John Mbadi and included **Central Bank of Kenya Governor Kamau Thugge, alongside officials from various ministries, independent oversight bodies, civil society organizations, the financial sector, and development partners
The ongoing conflict intensified following coordinated military strikes by the United States and Israel targeting Iranian sites, an operation that reportedly resulted in the death of Iran’s Supreme Leader Ali Khamenei and several senior government officials
Tehran has since launched retaliatory strikes, raising fears of a broader regional confrontation and deepening global economic uncertainty
Kenyan exporters have already begun feeling the effects of the conflict, particularly during the Ramadan period when flights to parts of the Middle East were suspended
Meat exporters estimate they could incur losses of up to Ksh1 billion since the conflict began due to disruptions in shipments
The tea sector has also expressed concern over the potential loss of market share in the region. According to George Ouna, director of the East African Tea Traders Association, Kenya could lose up to 20–25 percent of its tea market in the Middle East if the conflict continues
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Ahead of the meetings, Mbadi had clarified that the talks were primarily technical and not focused on securing a new lending arrangement immediately
However, Kenya has formally requested a new IMF support programme after its previous Ksh465 billion agreement expired in April 2025
The earlier arrangement included the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF), which provided financial assistance to help countries address structural economic challenges such as high inflation
Under the programme signed in April 2021, Kenya was expected to receive Ksh467.5 billion. The country ultimately accessed Ksh404 billion, leaving about Ksh63.4 billion undrawn after the government opted to terminate the programme
Currently, Kenya remains under the IMF’s Resilience and Sustainability Facility (RSF), which supports climate-related initiatives and economic resilience
The IMF emphasized that strengthening governance, improving public sector efficiency, and maintaining fiscal credibility will be key for Kenya as global economic risks continue to rise
