Here are pictures of the kitchen now

Cabinets above a fridge are rarely used, but no matter where you place it, suggest a counter depth (consider buying used if budget is an issue).

This area is wasted space.

Would a smaller fridge fit there and where fridge was located, add a pantry. A smaller microwave could be attached underneath the cabinet. Or…add a pantry here.

Excellent photos.

Try putting the fridge where the microwave is. The microwave can go where the fridge was, either on a shelf as Maureen says or the (new) countertop.

Also consider putting an 18" or 24 inch dishwasher to the right of the sink.

two ideas to clean up the space/reclaim some space.

A counter depth refrigerator will be even with the existing counters and a microwave over the stove with built in vent.

Look at a Habitat Re Store in your area for cabinets, often a great source for small kitchen redo.

I put my Christmas and Easter stuff above my fridge and other oddball things I don't use often, like cheesecloth.

Place fridge as suggested and consider storage as shown on the side.

A counter-depth frig is often 28"+ deep because the doors plus handles plus rear ventilation clearance come into play. Check the specs. OTR micros are gone, especially inconvenient to reach for everyone/seniors, imo.

Habitat for Humanity and other outlets often have affordable used fridges. Also check out free or swap groups on facebook.

1. What are the width and depth of the existing refrigerator?
2. Would you consider a narrower refrigerator? They're generally 24", 28", 30", 33", or 36" wide.
3. Do you want to leave the refrigerator where it is? Can it be moved to the location of the microwave? That would allow you counter space on three sides of the room.
4. Is the range hood vented to the outdoors?
5. Do you want to add a dishwasher?

So thinking of spinning fridge 90 degrees to be on the back wall to the left of the stove - so there would be a small (15") counter between the fridge and stove.

Then where the microwave is now, extending cabinets to the end of the wall and making an L to be like a small eat-in area - maybe 46" long. I'd put the microwave above the stove because the vent/light doesn't work anyway.

This change would make a long work area but the new countertop to the right of the sink with small island would give that storage area back. Minimal change of appliance location.

Thoughts?

IKEA has an online kitchen planner you can use to design your kitchen. Or at least measure everything including the appliances and create a drawing on graph paper. In either case, include the entire room including the space to the left of the microwave stand.

Since you’re getting new cabinets I would get rid of that awkward little corner that the fridge sets in now and move the fridge to the other side of the kitchen, provided you have enough room. Then I’d remove the wall to the left of the fridge if you can.
I know a lot of people are opposed to a microwave above the stove but in a small kitchen it’s a nice place to have it.

Here's what to do with the deep cabinet over the fridge.

The top of the refrigerator is 72" from the floor. I'm 5'5" and can reach it, no problem.

I think Emily has the right idea. Your kitchen doesn't have a doorway on the left wall so you could also put cabinets there, perhaps eliminating the need for cabinets around the window that block the light. Her example also includes an enormous refrigerator; you could use a slimmer model so that the kitchen wouldn't extend so far into the adjacent (unseen) space.