May 24, 2024

IMF reach agreement on Kenya’s loan review, $244 million disbursement

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IMF reach agreement to complete the third review of Kenya’s loan program, clearing the way for a $244 million disbursement.

The International Monetary Fund said on Monday that it had reached an agreement with Kenya on policies to complete the third review of Kenya’s loan program, clearing the way for a $244 million disbursement upon Executive Board approval.

The Fund said in a statement that the payment would bring total disbursements to about $1.18 billion under Kenya’s three-year, $2.34 billion Extended Fund Facility and Extended Credit Facility arrangements approved in April 2021.

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Kenya, IMF reach agreement

Kenya will now receive Sh28 billion loan as part of the $2.3 billion Special Drawing Right (SDR) approved in April last year.

Upon completion of the review, Kenya would have access to $244 million, bringing the total IMF financial support under these arrangements to about $1.17 billion (Sh134.5 billion).

The amount is aimed at cushioning the country from adverse economic implications brought about by the Covid-19 pandemic.

Kenya has gradually cut on expensive external commercial debt in the 2022/23 budget and is set to cut the debt limit to 55 percent of GDP.

The country’s debt currently sits at Sh8.2 trillion or 69.8 percent of GDP

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