The International Monetary Fund (IMF) has approved a Ksh150 billion (USD941.2 million) loan to Kenya on January 17th.
The funding is under the existing Extended Fund Facility and Extended Credit Facility arrangements.
“The Executive Board of the IMF concluded today the 2023 Article IV consultation with Kenya together with the sixth reviews and augmentations of access of USD941 million under the extended arrangements under the EFF and the ECF, approved in April 2021 and extended by 10 months in July 2023 to April 2025, and the first review under the 20-month Resilience and Sustainability Facility (RSF) arrangement, approved in July 2023,” the approval statement from the International Monetary Fund (IMF) read in part.
However, the loan comes with stipulations.
Immediate Disbursement and Focus on Economic Reforms:
- Ksh109 billion (USD684.7 million) of the total sum will be released immediately, with the IMF closely monitoring its usage.
- The loan falls under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs, aimed at promoting macroeconomic stability and strengthening debt sustainability.
Key Conditions for Loan Approval:
- Implementing economic reforms: This is crucial for Kenya to navigate the challenging global environment and recover from the pandemic and drought impacts.
- Addressing climate change and pandemic preparedness: Ksh9.5 billion will be dedicated to policies mitigating climate risks and enhancing pandemic readiness.