The IMF has clarified its position after saying it stopped Kenya from accessing $1.5 billion

godfred akoto

February 21, 2018 9:35 AM

East Africa's most powerful economy is facing heavy debts and needs relief to balance the shilling

The International Monetary Fund has clarified its position on reports that Kenya had missed out on securing $1.5 billion in loan cover.

In a statement issued to the media, the international lender said Kenya still had two months to go if it wanted to access the loan.

“Further to some press reports earlier today, I would like to clarify the status of Kenya's Fund-supported program.

“The precautionary SBA/SCF arrangement remains in place until end-March 2018. The second and third reviews of the program, due respectively in June and December 2017, could not be completed on schedule as agreement could not be reached on stronger fiscal policies, and discussions were postponed due to the prolonged election period. Kenya continues to have access to resources since June subject to policy understandings to complete the outstanding reviews.

“An IMF staff team is currently in Nairobi for discussions on a possible new program and we are hopeful for an agreement.

Kenya's external debt has skyrocketed and figures from the country's central bank indicate the country borrowed over $7 billion dollars to continue an ambitious infrastructural expansion programme.

godfred akoto