By Cathy Jenkins BBC correspondent, Nairobi

Kenya's new government could get financial help from the International Monetary Fund (IMF) as early as July.

IMF officials said the money could start flowing if the government fulfilled its promises to take action to stamp out corruption and promote good governance.

Kibaki was elected on an anti-corruption platform

Four years ago the IMF had suspended loans worth $200m, because of concerns over corruption in the administration of former president Daniel arap Moi.

Last December, the opposition parties triumphed in general elections, and Mwai Kibaki was elected Kenya's new president.

'Making the right moves'

The director of the IMF's Africa department, Abdoulaye Bio-Tchane, said initial discussions over the loans would be held next month, followed in April and May by detailed discussions over the government's economic programme.

IMF Africa director Abdoulaye Bio-Tchane praises Kenya's new government

Mr Bio-Tchane said Kenya's new government was making all the right moves and had already started to deliver on its promise to fight corruption:

"I'm happy to tell you that we have already started working with this government and I think all reactions, all the declarations, all the statements made by this government is going in the right direction", Mr Bio-Tchane said.

The failure of Kenya's former government to tackle corruption meant that the IMF never resumed funding once it was suspended.

President Kibaki's government has promised to fulfil the conditions set by the IMF, including the passing of two anti-corruption bills and the development of a strategy to fight poverty.

Mr Bio-Tchane said everyone understood that Kenya's financial situation was very difficult and that new policies introduced, such as free primary education, now had to be paid for.

But he said the government was already looking at how to finance this initiative and that free primary education was something the IMF supported.