Kenya and the International Monetary Fund will discuss a new lending programme and abandon the current one, as the country struggles to get its economy back on track after a borrowing spree led to a surge in debt-servicing costs.

The International Monetary Fund has received a formal request for a new programme from the Kenyan authorities and will engage with them going forward, it said on Monday. A ninth review under its current extended fund facility and extended credit facility programmes will not proceed,

Kenya requested a new funding program from the International Monetary Fund after agreeing not to proceed with a final review of an existing facility that would have unlocked $800 million.