IMF approves Ksh78.3b loan for Kenya amid Coronavirus pandemic

IMF approves Ksh78.3b loan for Kenya

IMF approve's Ksh78.3b loan for Kenya

The International Monetary Fund (IMF) has approved a Ksh78.3 billion loan for Kenya.

Reports state that the loan is meant to help Kenya fight the economic impact of coronavirus.

The money will also help pay for the balance of payments deficit.

In a statement seen by Pulselive.co.ke, IMF noted that Covid-19 pandemic is taking a toll on the Kenyan economy, significantly reducing growth, creating fiscal and external financing needs.

Economy to suffer

According to the IMF, the impact of COVID-19 on the Kenyan economy will be severe.

"While the authorities have taken decisive action to respond to the pandemic’s health and economic impacts, the sudden shock has left Kenya with significant fiscal and external financing needs," the statement read in part.

It continued: "Authorities have committed to resume their fiscal consolidation plans once the crisis abates to reduce debt vulnerabilities."

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