Kenya to receives first IMF disbursement amounting to Kshs. 43.9B – KBC

Kenya is expected to receive Kshs. 43.9 billion ($410 million) from the International Monetary Fund (IMF) as part of the package agreed in April to support the country post-covid recovery efforts.

The disbursement which is still subject to the approval by IMF management and the Executive Board in the coming weeks is part of the $2.34 billion loan facility agreed upon in April this year.

“The IMF staff team and the Kenyan authorities have reached a staff-level agreement on the first review of Kenya’s economic program under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF),” said IMF in a statement released on Monday.

The staff which met National Treasury Ukur Yatani, CBK Governor Dr. Patrick Njoroge and other government officials commended Kenya’s efforts to reduce COVID-19 infection rates and actions to cushion the blow to the economy and advance economic reforms agenda.

According to the lender, the COVID-19 vaccination program rolled out by the government and the IMF program which is designed to support Kenya’s efforts to accelerate and expand vaccinations will further give boost to growth this year.

“The economic recovery should be sustained, although the persistence of the pandemic suggests the pickup envisioned in 2021 will be slightly less strong than anticipated. IMF staff now project the economy to expand by 6.3 percent in 2021. The coronavirus shock has unfortunately also reversed some of the poverty reduction gains Kenya achieved in recent years and debt remains elevated.”

The multilateral lender further expects medium term growth to reach just above 6%.

“The 38-month program is an initiative of the government of Kenya, targeted at stabilizing the economy and supporting Kenya’s economic recovery and inclusive growth plan,” Treasury CS Ukur Yatani said last month.