Finance Minister John Mbadi said on Tuesday that Kenya plans to hold follow-up meetings with the International Monetary Fund in an effort to secure a new programme.

Mr Mbadi said the Kenyan government was confident that it would agree with the lender on the treatment of securitised debt.

The East African nation, which is seeking new ways to finance infrastructure projects due to sharply rising debt, has turned to securitising some revenues and borrowing against them.

While the government viewed the move as one that allowed it to avoid accumulating more debt, the IMF wanted the additional borrowing to be classified as normal debt, Mr Mbadi said.

According to the minister, there was confidence that the two will come to an agreement.

Kenya’s $3.6 billion programme with the IMF expired earlier this year, and some officials had expressed interest in getting a new one that would include a lending component.

Some financial analysts suggested that Kenya required a new loan agreement from the Washington-based Fund to secure its external debt repayments.

(Reuters/NAN)