World Bank Executive Board approves IMF–World Bank LIC-DSF overhaul, adding domestic-debt and long-term modules

On September 15, 2026 the World Bank Executive Board approved reforms to the joint IMF–World Bank Debt Sustainability Framework for Low-Income Countries (LIC-DSF). The package adds a domestic debt module, a long-term development module, recalibrated debt-carrying-capacity thresholds, and strengthened stress tests; the framework is expected to become operational in the second half of 2027.

By raising the analytical weight on domestic debt and long-term development liabilities, the reworked LIC-DSF will increase official scrutiny of countries with large domestic or commercial financing. That could raise informational and conditionality pressure on vulnerable African sovereigns (including Kenya), potentially increasing perceived refinancing or repricing risk for their external and commercial debt if initial assessments signal weaker debt-carrying capacity. This is a change in official assessment tools, not evidence of market re-pricing.

IMF and World Bank to publish operational guidance and analysis templates; framework slated to be operational in H2 2027.