Loans obtained from the International Monetary Fund (IMF) have increased threefold to Ksh.335.5 billion as of June this year from January 2021, reflecting the impact of Kenya’s multi-year credit facility with the multilateral lender.
The significant rise from Ksh.111.3 billion in January 2021 occurred slightly over two years since Kenya entered into a 48-month arrangement with the Fund under its Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements in February 2021.
According to data from the Treasury, the proportion of IMF funding in relation to total multilateral loans has surged from 7.39 percent to 12.64 percent over this period.
IMF funding is projected to continue growing as the Washington-based institution makes additional disbursements under these programs.
Currently, IMF staff are conducting a mission in Kenya for the sixth review of the arrangement, which will pave the way for further disbursements from the fund in December.
The delegation has engaged with President William Ruto, Treasury officials, and the Central Bank of Kenya (CBK) Governor Kamau Thugge in advance of a staff-level agreement on the review later this month.
In its last review, the IMF released Ksh.63 billion ($415.4 million), including Ksh.16.7 billion ($110.3 million) from augmentation of access.
The IMF Executive Board also approved a 20-month arrangement under the Resilience and Sustainability Facility, totaling Ksh.83.7 billion ($551.4 million), to support Kenya’s resilience to climate change and stimulate further private climate financing.
