Kenya’s central bank governor says the country wants its next IMF deal to be funded, ahead of talks with the Fund in September.

Kenya will push for a funded International Monetary Fund (IMF) programme in its upcoming negotiations with the Fund, Central Bank Governor Kamau Thugge said on Wednesday.

The IMF is expected to visit Kenya next month to discuss the government’s request for a new programme. In March, CBI News reports that Kenya and the IMF dropped the final review of the previous $3.6 billion Extended Fund Facility and Extended Credit Facility arrangement, leaving an $800 million tranche undisbursed.

Kenya had faced challenges in narrowing its fiscal deficit and improving tax collection, key IMF requirements, after abandoning proposed tax hikes in the wake of deadly nationwide protests.

Analysts say fresh IMF financing is vital to help Kenya meet its external debt repayment obligations. While some observers had expected Nairobi to seek a non-funded arrangement given its past performance, Thugge stressed that the government’s preference was clear.

“Our preference will be to have a funded programme, and that is what we have expressed to the IMF board,” Thugge told reporters, a day after the central bank lowered its benchmark lending rate for the seventh consecutive policy meeting.