The International Monetary Fund (IMF) has loaned Kenya Ksh 78 billion under the Extended Fund Facility and Extended Credit Facility.
The approval of the loan by the IMF board follows conclusion of the Seventh and Eighth Reviews by a team from the lender.
The EFF and ECF were first approved in April 2021 and a review under the Resilience and Sustainability Facility arrangement, approved in July 2023.
The two arrangements aim to support Kenya’s program to address debt vulnerabilities while safeguarding resources for priority social and developmental needs; build resilience to shocks; improve governance and transparency; and support broader economic reforms.
In addition, the Resilience and Sustainability Facility targets to reinforce Kenya’s efforts to address climate-related challenges and catalyse further private climate finance.
The immediate disbursement comprises Ksh 62.5 billion under the Extended Fund Facility and Extended Credit Facility and another Ksh 15.5 billion under the Resilience and Sustainability Facility.
This now pushes up the total cash approved by the IMF to Kenya under the Extended Fund Facility and Extended Credit Facility to Ksh 465 billion shillings.
Under the Resilience and Sustainability Facility, the IMF has approved a total of Ksh 93 billion for disbursement to Kenya.
“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. Exchange rate flexibility is vital to improve resilience to external shocks and competitiveness,” said IMF, First Deputy Managing Director, Gita Gopinath.
