IMF set to meet for Sh57bn Kenya loan approval
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IMF (International Monetary Fund) scheduled to review Kenya's fifth loan approval of KSh57bn under KSh291bn funding
IMF (International Monetary Fund) scheduled to review Kenya’s fifth loan approval of KSh57bn under KSh291bn funding.
The fifth review of Kenya’s continuing program, which was extended by 10 months to April 2025, will be discussed at the IMF executive board meeting set for July 17th.
Kenya will be able to withdraw $410.0 million (Sh57.8 billion) as its sixth withdrawal from the credit line made available by this program if the fifth review is successfully considered.
The IMF claims that among other things, the Executive Board meeting will be centered on Kenya’s request for a fresh 20-month loan facility under the fund’s resilience and sustainability program, which translates to around Sh76.8 billion.
“Fifth Reviews under the Extended Fund Facility and Extended Credit Facility arrangements and request for a 20-month arrangement under the Resilience and Sustainability Facility. Requests for extension, rephasing, and augmentation of access, modification of a performance criterion, waiver of applicability for performance criteria and waiver of non-observance for a performance criterion, and monetary policy consultation clause,” the fund says in its board meetings calendar.
This will be Kenya’s second-biggest withdrawal from the current IMF programme; the largest being the $447.4 million (Sh63.1 billion) credit line that was made available in December 2022 after the fourth review was completed.
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Kenya will have tapped $2.07 billion (Sh291.3 billion) since the current agreement with the IMF commenced in April 2021, assuming you include the amount that will be granted following the fifth review.
“Upon completion of the fifth reviews by the IMF Executive Board, Kenya would have immediate access to SDR306.7 million (about US$410 million), including from the augmentation of access under the Extended Credit Facility/Extended Fund Facility. This would bring total IMF financial support disbursed under the EFF and ECF arrangements to SDR1,509 million (about US$ 2,017 million),” the IMF stated in its May 23rd statement upon conclusion of the staff level agreements.
The July 17 meeting comes when the IMF Nairobi Office is undergoing changes with Haimanot Teferra having taken over as Mission Chief from Mary Goodman earlier in the year while Tobias Rasmussen is due to exit as the resident representative this month.
Rasmussen has served in Kenya since August 2019 and will be remembered for being at the helm when Kenya started the running programme with the fund.
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