The executive board of the International Monetary Fund (IMF) has approved ksh 255 billion for Kenya.
The country will use the loan to curb the Covid-19 pandemic and reducing debt vulnerabilities. IMF will offer the loan in instalments for three years.
Approval of the loan under the fund’s Extended Credit Facility and Extended Fund Facility, ECF/EFF, will enable the immediate disbursement of Ksh33.5 billion which can be used for budget support.
According to the IMF statement, Kenya’s loan remains sustainable. However, the country is at high risk of debt distress and the authorities should focus their near-term agenda on urgent structural policy challenges.
“The Kenyan authorities have demonstrated a strong commitment to fiscal reforms during this unprecedented global shock, and Kenya’s medium-term prospects remain positive.
“The program supported by EFF/ECF arrangements with the Fund provides a strong signal of support and confidence,” said IMF Deputy Managing Director, Antoinette Sayeh.
Kenya’s debt will now rise to 7.7 trillion.
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