Kenya has yet again secured a vital financial lifeline from the International Monetary Fund (IMF) in the form of a Sh109.8 billion disbursement.

This timely injection follows the completion of the sixth review of the East African nation's multi-year arrangement with the Fund, encompassing the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programmes, alongside the inaugural review of the Resilience and Sustainability Facility (RSF).

The approval stands as a testament to Kenya's remarkable economic resilience in the face of a formidable cocktail of external and domestic challenges, including a protracted period of drought.

The IMF Executive Board, acknowledging this resilience, commended Kenya's authorities for their continued commitment to prudent economic management and structural reforms.

"Kenya’s growth remained resilient in the face of increasing external and domestic challenges," stated Antoinette Sayeh, Deputy Managing Director of the IMF.

Read More

  1. IMF approves Sh78 billion loan to Kenya
  2. IMF speaks after being blamed for Kenya tax hikes causing widespread protests
  3. Treasury Bill rates signal potential peak in domestic borrowing costs

"The EFF/ECF and RSF arrangements continue to support the authorities’ efforts to sustain macroeconomic stability, strengthen policy frameworks, withstand external shocks, push forward key reforms, and promote more inclusive and green growth."

Despite depreciation-induced inflationary pressures projected to rise in the first half of 2024 due to global oil price volatility, the IMF anticipates the Kenyan economy to maintain its resilience, with GDP growth forecast to accelerate through the final three quarters of the year, buoyed by a robust rebound in the agricultural sector.

The Fund projects overall growth for 2024 to reach 5 per cent, even as ongoing adjustments in fiscal policy and external accounts take effect.

The latest disbursement elevates the cumulative total received under the EFF/ECF programme to Sh994.6 billion, bolstering Kenya's ongoing multi-year partnership with the IMF, which extends until April 2025.

This vital collaboration provides invaluable support in navigating the current economic complexities and paves the way for a future characterized by greater stability and sustainable prosperity.

While acknowledging the potential for inflationary pressures in the near term, the IMF's unwavering confidence in Kenya's prospects underscores the nation's inherent economic strength and unwavering commitment to reform.

This timely financial assistance should prove instrumental in not only navigating the current economic turbulence but also in laying the groundwork for a greener and more inclusive future for all Kenyans.