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Global multilaterals

International Monetary Fund · IMF

The lender of last resort to countries with balance-of-payments problems — and the most influential surveillance institution in international macro.

Mandate

Established 1944 at Bretton Woods. 190 member countries. Mandate: foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, reduce poverty around the world.

How it works

Three core functions: (1) Surveillance — the Article IV consultation, an annual review of every member's macro policies and outlook. (2) Lending — programs (EFF, ECF, RCF, FCL, RFI, RST) that provide foreign currency to countries with payment problems, attached to policy conditions ('conditionality'). (3) Capacity development — technical assistance and training.

Why it matters

Kenya has been on a sequence of IMF programs since 2021 (initially a 38-month EFF/ECF blend, subsequently extended and topped up). Conditions have driven choices on tax policy, the fiscal stance, exchange-rate flexibility, and SOE reform. IMF disbursements provide critical FX during periods when the Eurobond market is closed.

What to watch

Article IV staff reports (typically annual), program review reports (typically every 6 months), the World Economic Outlook (October and April), the Global Financial Stability Report. Staff reports are the most candid published assessment of a country's fiscal and BoP position.