IMF approves Kenya’s financial package of $941 million

A staff-level agreement follows the approval of the IMF loan to Kenya in November 2023.

IMF approves Kenya’s financial package of $941 million
Image source: Freepik.
Editor’s note: This story is part of Mariblock’s “State of Fiat” coverage. Digital assets such as bitcoin are seen as competitors to central bank money. Therefore, we consider informing our audience of the state of their local currencies worthwhile.

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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Key quote 

 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 details

  • 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.

Key background 

  • 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.