The International Monetary Fund (IMF) has reached an agreement to advance Kenya an extra Ksh.28 billion loan.
This is part of the Ksh.265 billion Special Drawing Right (SDR) the multilateral lender authorized in April last year.
The agreement will be subject to IMF management and the Executive Board’s approval in the following weeks.
With the remaining funding under the SDR deal, Ksh.28 billion would bring the total IMF financial support to Ksh.134.5 billion.
The amount is aimed at cushioning the country from adverse economic implications brought about by the COVID-19 pandemic.
According to the IMF, Kenya is on track with its fiscal correctness, especially on debt management.
The country has gradually cut on expensive external commercial debt in the 2022/23 budget and is set to cut the debt limit to 55 percent of GDP.
Kenya’s debt currently sits at Ksh.8.2 trillion both foreign and domestic or 69.8 percent of Gross Domestic Product (GDP).