Core Viewpoint - The Kenyan government intends to negotiate a new loan agreement with the International Monetary Fund (IMF) to address the tightening borrowing environment and manage its significant public debt [1] Debt Situation - Kenya's public debt has reached 11.8 trillion Kenyan Shillings, with 2.95 billion Special Drawing Rights owed to the IMF, equivalent to approximately 519.8 billion Kenyan Shillings [1] - Kenya ranks as the seventh largest debtor to the IMF globally and the third largest in Africa [1] Fiscal Challenges - The Kenyan Finance Minister, Mbadhi, indicated that the government's tax revenue and borrowing capacity are extremely limited, with debt accounting for nearly half of the government's revenue [1] - The government plans to explore alternative funding methods, including fund securitization and the sale of state-owned enterprise shares [1] IMF Engagement - The Central Bank Governor, Tuge, confirmed that the government is seeking a new funding loan arrangement with the IMF, with an IMF team scheduled to visit Nairobi in January [1] - A previous arrangement of 3.6 billion USD, which was a four-year extended fund and credit facility, expired in April of this year, with delays in negotiations attributed to disagreements over the classification of securitized revenues [1]