The International Monetary Fund (IMF) has approved a loan of Ksh.150 billion (USD 941.2 million) for Kenya.
This decision, made after a consultation meeting with the IMF Executive Board, permits the immediate release of approximately $624.5 million (Ksh 99.6 billion) under the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) arrangements.
The IMF Executive Board wrapped up the 2023 Article IV consultation with Kenya, which included the sixth reviews and augmentations of access under the EFF and ECF arrangements. These arrangements were initially approved in April 2021 and extended until April 2025 in July 2023.
“The EFF/ECF and RSF arrangements persist in supporting the authorities’ endeavors to maintain macroeconomic stability, fortify policy frameworks, resist external shocks, advance key reforms, and encourage more inclusive and green growth,” said Antoinette Sayeh, Deputy Managing Director, and Acting Chair
Of the total funding, Ksh.109 billion ($684.7 million) will be immediately disbursed to alleviate Kenya’s financial strains.
IMF will keep a close watch on the funds’ usage. The EFF/ECF programs are designed to foster macroeconomic stability and enhance debt sustainability.
The IMF acknowledged Kenya’s resilience in the face of economic challenges brought on by the COVID-19 pandemic and a two-year drought, highlighting the country’s capacity to withstand such adversities.
This financial aid is anticipated to strengthen Kenya’s economic recovery efforts and provide the necessary resources to navigate ongoing global uncertainties. The IMF also announced an immediate disbursement of about USD 60.2 million under the Resilience and Sustainability Facility (RSF) arrangement.
The approval signifies international faith in Kenya’s economic policies and dedication to reforms. The funds will aid in maintaining stability and promoting sustainable growth in the country.
Elaina Moyer