- The International Monetary Fund (IMF) has given the green light for the disbursement of a $415.4 million (Sh58.8 billion) loan to Kenya.
- IMF expects that reforms undertaken through the RSF programme will enhance Kenya's preparedness to address climate-related challenges, safeguarding the country against the adverse effects of climate change.
The International Monetary Fund (IMF) has given the green light for the disbursement of $415.4 million (Sh58.8 billion) to Kenya.
The funds, which were approved during the latest review of the multi-year programme running until April 2025, are set to boost the country's economic stability and also combat adverse effects of climate change.
With this latest disbursement, the cumulative funding provided by the IMF to Kenya through the multi-year programme that was given a nod back in April 2021, will reach a whopping Sh288.6 billion ($2.04 billion).
The institution has also sanctioned an additional disbursement of $551.4 million (Sh78 billion) under the resilience and sustainability facility (RSF).
This new financial support totalling totaling Sh136.9 billion is expected to aid Kenya's efforts in tackling the challenges posed by climate change, ensuring a more sustainable and resilient economy.
These disbursements will operate alongside the extended fund facility and the extended credit facility arrangements (EFF/ECF), which have been extended for 48 months until April 2025.
IMF's Deputy Managing Director and Acting Chair, Antoinette Sayeh, highlighted the government's commendable progress in implementing economic reforms essential to the multi-year programme despite facing headwinds like drought and a challenging external environment.
"While the medium-term outlook remains positive, in the near-term, global headwinds continue to have a bearing on economic activity, amid elevated inflationary pressures," said Sayeh.
She added, "The authorities' commitment to robust policies to sustain reforms that promote resilient and inclusive growth will support Kenya's positive medium-term prospects."
The passage of the 2023/24 budget and the 2023 Finance Act was deemed crucial by the IMF to support ongoing fiscal consolidation efforts aimed at reducing debt vulnerabilities.
However, the fund also emphasized the need for sustained structural reforms, particularly in strengthening public financial management systems and managing fiscal risks related to State-owned enterprises.
Moreover, the IMF expects that reforms undertaken through the RSF programme will enhance Kenya's preparedness to address climate-related challenges, safeguarding the country against the adverse effects of climate change.