The sports category has moved to a new website.

Kenya secures $447 million from IMF for budgetary support

Kenya secures $447 million from the International Monetary Fund million for budgetary support
  • The IMF has approved a loan of $447 million to Kenya. 
  • The loan would be used to buffer the country’s foreign exchange reserves.
  • Kenya’s economic stability is the reason why this loan was swiftly approved. 

The conversation between Kenyan officials and representatives from the International Monetary Fund yielded a welcome result for the Kenyan government.

The executive board of the IMF recently approved a $447.39 million loan to Kenya to help buffer the country’s foreign exchange reserves which had fallen to just 3.98 months of import cover below the legal threshold of four months.

Kenya’s economic stability and projected fiscal growth eased the IMF’s decision to grant the loan. However, the IMF showed concerns about Kenya’s ability to tackle climate-change effects.

The IMF deputy managing director, Antoinette Sayeh, stated, “Kenya’s commitment to its economic programme supported by the Fund’s EFF and the ECF arrangements is anchoring debt sustainability.

ADVERTISEMENT

The economy has performed well amid slowing global growth, tighter financing conditions and volatile commodity prices, while the continuing drought has increased food insecurity, and climate-related risks pose ongoing challenges. Mutually reinforcing prudent macroeconomic policies and resolute implementation of structural reforms remain essential to safeguard positive medium-term prospects.”

She also lauded some of the initiatives of the current administration, including the elimination of fuel subsidies and the country’s current return on tax.

“Looking ahead, continued strong commitment to fiscal consolidation over the medium term remains key to reducing debt vulnerabilities. Additional tax policy measures, anchored in a medium-term revenue strategy to secure space for needed social and development spending, and improved spending efficiency, revenue administration, and public financial and debt management will be key,” she said.

This new loan follows the fourth review of the $2.34 billion (Ksh288 billion) 38-month Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements with Kenya.

JOIN OUR PULSE COMMUNITY!

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Kenya Power MD explains fate of idle prepaid meters post-upgrade deadline

Kenya Power MD explains fate of idle prepaid meters post-upgrade deadline

Explainer: What follows when an insurance company closes or collapses

Explainer: What follows when an insurance company closes or collapses

Kenya Power sets deadline for mandatory update of prepaid metres [How to update]

Kenya Power sets deadline for mandatory update of prepaid metres [How to update]

Gov't to offload shares in Stanbic Holdings, Housing Finance, & 4  other firms on NSE

Gov't to offload shares in Stanbic Holdings, Housing Finance, & 4 other firms on NSE

MKU billionaire taps ex-gov't press CEO to lead TV47 & Radio 47

MKU billionaire taps ex-gov't press CEO to lead TV47 & Radio 47

The power of trend trading in commodities: Strategies and insights

The power of trend trading in commodities: Strategies and insights

Regulator responds to S.K. Macharia's closure of Directline, gives way forward

Regulator responds to S.K. Macharia's closure of Directline, gives way forward

Billionaire S.K. Macharia shuts down company & fires all employees immediately

Billionaire S.K. Macharia shuts down company & fires all employees immediately

Job cuts looming as NMG announces restructuring plan

Job cuts looming as NMG announces restructuring plan

ADVERTISEMENT