Economy

Reasons Why IMF Has Slashed Kenya's Funding Program to $976 Million

Kenya’s International Monetary Fund (IMF) program has on Tuesday been reduced in size after the partial refinancing of a $2.0 billion (Ksh.258.7 billion) Eurobond earlier this year to support debt sustainability and policy reforms.

The remaining access is now set at $976 million (Ksh.126.2 billion), down from the initial $1.27 billion (Ksh.164.2 billion), representing 135.55% of quota compared to the previous 175.85%.

The total size of Kenya’s IMF program, initiated in 2021, now stands at $3.6 billion (Ksh.465.7), down from the initial $3.88 billion (Ksh.501.6), excluding the Resilience and Sustainability Facility (RSF).

$90 Million Special Drawing Rights

The RSF, initially expected to unlock Special Drawing Rights (SDR) of 135.68 million, is now set at SDR 90.46 million.

Also Read: IMF Approves Ksh.150 Billion Loan for Kenya

“An IMF team, in collaboration with Kenyan authorities, reached a staff-level agreement on a comprehensive policy package required to complete the seventh reviews of Kenya’s economic program under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements, as well as the second review of the RSF arrangement,” IMF Representative to Kenya, Haimanot Teferra said.

This package aims to preserve debt sustainability, maintain price stability, manage fiscal risks, address financial sector vulnerabilities, and continue advancing structural reforms for inclusive and resilient growth.

The IMF’s exceptional access window for Kenya has been removed following the Eurobond refinancing.

What The Reduced Funding Means

What this means is that Kenya has exhibited improved debt management and reduced refinancing risks associated with the June 2024 Eurobond.

The partial buyback of the Eurobond was facilitated by the proceeds from a new issuance in February.

IMF said that because of Kenya’s buyback of a significant share of the 2024 Eurobond using proceeds from a new issuance, which alleviated near-term exceptional balance of payment needs, it agreed, together with Treasury to bring cumulative access under the EFF/ECF arrangements within the normal limits and a recalibration of access towards the more concessional financing under the ECF, consistent with the Fund’s policy on blended access.

The agreement is subject to approval by the IMF’s Executive Board.

Monitor Your Business Transaction

Collins Ogutu

Nairobi based Digital Journalist, Corporate Communication Expert and Digital Marketer with a wealth of experience in multimedia. Accredited member of the Media Council of Kenya.

Related Articles

737 Comments

  1. http://cs9529.com/

    It’s appropriate time to make some plans for the long run and it’s time to be
    happy. I have read this publish and if I may I want to recommend
    you few fascinating issues or advice. Perhaps you can write next articles regarding this article.

    I want to read more issues about it!

  2. Acné juvenil y acné en mujeres adultas, rósacea, tratamiento de las cicatrices del acné. Bodog stands as a top online casino which players have trusted since 1994. Our site is one of Canada’s top gaming destinations with more than 1,000 real money casino games and features new slots and classic table games as well as real live dealer experiences. Online slot games in the US offer something for everyone, whether you’re into high-payout games, massive jackpots, or just spinning for fun. The key is knowing where to play and picking games that match your playstyle. If you want frequent wins, go for high RTP slots. If you’re chasing life-changing money, progressive jackpots are the way to go—but keep your expectations in check. Whatever you play, just make sure it’s from a legit site so you actually get paid when you win.
    https://wibacademy.com/how-gcash-is-making-mines-games-like-spribes-more-accessible/
    The premise of Crash is for players to determine the trajectory of a souped up rocket, so that the biggest possible prize can be collected. To aid you in this quest, you can utilize data from previous launches to guide your thinking, making Crash a great game for those who like to analyze every bet. In short, this is certainly one of the best games on Roobet. Attempting to hack Mission Uncrossable or any game on Roobet is unethical and carries significant consequences. Roobet uses advanced security protocols and provably fair technology, meaning that each game outcome is verifiable and transparent. Any attempt to manipulate the game through hacking could result in the loss of your account, confiscation of funds, and a permanent ban from the platform. Additionally, hacking is illegal and can lead to legal action, putting players at risk of serious penalties. It’s always better to play fairly and enjoy the game as intended.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button