IMF disburses Sh44 billion as part of Sh258 billion loan for Kenya toward Covid-19 relief

The International Monetary Fund (IMF) has disbursed part of the funds in the controversial loan granted to the Republic of Kenya.

In a statement dated May 18, 2021, IMF announced that Kenya was scheduled to receive a total of $2.4 billlion (Sh258 billion) over the next three years.

IMF official Mary Goodman confirmed that Sh44.2 billion had been wired to the Central Bank of Kenya following the conclusion of pre-disbursement talks.

"The new program with the IMF will support the next phase of the government's COVID-19 response. Combining arrangements under the Extended Fund Facility and Extended Credit Facility, it provides for $2.4 billion in low-cost financing over the next three years.

"Other development partners will also be providing substantial amounts of concessional financing. Without this help, Kenya would have to aggressively cut spending on investment and social programs, making it more difficult to achieve a durable and inclusive recovery," the statement from IMF read in part.

The statement also noted: "In May, the IMF provided $739 million in the form of an interest-free loan under the Rapid Credit Facility to help Kenya weather the initial shock. This helped to cover the cost of additional spending on health, social protection, and speeding up payments to bolster the economy."