IMF approves another Ksh55B loan to Kenya
IMF approves Ksh55B loan to Kenya following a review of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) financial deal
IMF approves Ksh55B loan to Kenya following a review of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) financial deal.
The International Monetary Fund (IMF) has said its executive board has approved a Ksh55.1 billion($ 447.39 million) disbursement to Kenya to help boost the country’s foreign exchange.
The revealations were made in a statement dated Monday, December 19, by the the International Monetary Fund.
This was the fourth payment made under the terms of the Ksh255 billion loan that Uhuru Kenyatta, a retired president, and the IMF agreed upon in April 2021.
The purpose of Kenya’s 38-month loan was to strengthen the country’s economy, particularly in the period before the pandemic.
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“Kenya’s commitment to its economic program supported by the Fund’s Extended Fund Facility and the Extended Credit Facility arrangements is anchoring debt sustainability,” Antoinette Sayeh, the IMF Deputy Managing Director, stated.
She observed that despite the slowing global economy, more stringent lending requirements, and unstable commodity prices, the nation’s economy performed well.
In addition, she came to the conclusion that protecting promising medium-term prospects required careful macroeconomic policies and steadfast structural reform implementation.
President William Ruto’s decision to discontinue fuel subsidies was also praised by the IMF, as were his plans to considerably reprioritize spending in order to keep the fiscal deficit below the planned amount.
“Looking ahead, continued strong commitment to fiscal consolidation over the medium term remains key to reducing debt vulnerabilities,” IMF added.
When IMF approved the loan, it set strict regulations that Kenya had to comply with or risk the consequences.
For instance, Kenya was expected to enforce a wealth declaration policy for all public servants to curb corruption.
Kenya was also expected to demand that all companies submit accurate, complete, and updated beneficial ownership information to the Registrar of Companies.
“These reforms must be instituted in selected parastatals to return them into profit-making or improve their efficiency,” read part of the statement issued in April 2021.
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