The International Monetary Fund (IMF) Board has approved a USD606 million (approximately Ksh78 billion) loan for Kenya following a review of the country’s economic programs.
In a statement on Wednesday, October 30, IMF noted that the funds will support Kenya’s efforts to strengthen public finances and enhance resilience to climate shocks.
“The IMF Executive Board has completed the review of Kenya’s economic programs, approving $606 million in combined disbursements. The financing will support efforts to strengthen public finances and enhance resilience to climate shocks, while protecting priority social spending.
“The Executive Board’s decision allows for the immediate disbursements of SDR365.28 million (about US$485.8 million) under the Extended Fund Facility (EFF)/Extended Credit Facility (ECF) arrangements and SDR90.47 million (about US$120.3 million) under the Resilience and Sustainability Facility (RSF) arrangement,” IMF stated.
Gita Gopinath, IMF’s First Deputy Managing Director and Acting Chair, stated that Kenya’s economy remains resilient, with growth above the regional average and inflation decelerating despite a difficult socio-economic environment.
“The Central Bank of Kenya’s decisive actions have supported price stability and external sustainability, including through institutional changes to improve the functioning of the monetary policy operational framework and the money and foreign exchange markets,” Gopinath explained.
IMF affirmed that it was committed in supporting crucial economic reforms in Kenya, adding that it recognized the complex balancing act the country faces.
“Improved governance and transparency remain essential to restore public trust in the effective use of public resources. We stand with Kenya on this journey, supporting crucial economic reforms and keeping the wellbeing of Kenyan citizens at the forefront,” IMF remarked.
This comes after a team from IMF, led by Haimanot Teferra, the IMF’s Mission Chief to Kenya, concluded a six-day visit to the country last month.
IMF disclosed that the team held discussions with Kenyan authorities from September 11 to 16, focusing on recent developments and their policies to address emerging challenges.
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