Funding and Raising Capital
Kenya to Receive Sh28bn Loan from IMF
The International Monetary Fund ( IMF) has agreed to issue a Sh28 billion loan to Kenya as part of the $2.3 billion Special Drawing Right (SDR) approved in April last year.
The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks. 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).
Based in Washington DC, the IMF executive board is expected to formally approve the staff level deal in coming weeks. The loan is meant to help the nation speed up its recovery from the adverse economic implications brought by the pandemic.
“Kenya is on track to meet its fiscal objectives and put debt debt as a share of GDP firmly on a downward path. Kenya’s fiscal position has been underpinned by strong tax revenue performance this year, buoyed by a robust economic recovery and the important tax policy measures already undertaken as part of Kenya’s multi-year plan to reduce debt related vulnerabilities,” said Mary Goodman who led the IMF staff delegation on the mission to Kenya.
However the IMF says that the government must maintain the momentum of reforms especially those covering the ailing State owned enterprises (SOEs). These includes Kenya Airways and Kenya Power.
The IMF team met with Treasury Cabinet Secretary Ukur Yatani, head of public service Joseph Kinyua and CBK Governor Patrick Njoroge among other State officials.
