The International Monetary Fund (IMF) has approved a $941 million loan to Kenya under the Extended Fund Facility (EFF) as well as the Extended Credit Facility (ECF), with an immediate disbursement of $624.5 million.
This follows a staff-level agreement in November 2023 to ease financial pressure.
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According to the IMF:
“Kenya’s growth remained resilient in the face of increasing external and domestic challenges. The EFF/ECF and RSF arrangements continue to support the authorities’ efforts to sustain macroeconomic stability.”
- The disbursement under the EFF and ECF will also receive an additional $60.2 million under the Resilience Sustainability Facility (RSF).
- According to reports, the executive board approval brings the total funds disbursed under the EFF and ECF arrangements to about $2.6 billion.
- In November 2023, the IMF reached a staff level agreement with Kenya to disburse $682 million.
- The country has been facing acute liquidity challenges and uncertainty regarding its ability to access funding from financial markets.
- Kenya has a $2 billion Eurobond maturing in June.
- The IMF acknowledges that Kenya’s economy has shown resilience despite facing global challenges like drought and the impact of the Covid-19 pandemic.
- The country intends to use the funding to strengthen its reserves before its Eurobond payment in June.