NAIROBI, Kenya
The International Monetary Fund (IMF) on Wednesday approved a $941 million (Ksh.150 billion) lending boost to Kenya, with an immediate disbursement of $624.5 million (Ksh.99.6 billion), offering some relief to the East African country as it battles financial pressures.
The disbursement under the
Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs will
also be topped by a release of $60.2 million (Ksh.9.6 billion) under the
Resilience and Sustainability Facility (RSF) arrangement.
The executive board sign-off
brings the IMF's total funding commitment to Kenya under all three facilities
to more than $4.4 billion (Ksh.701.8 billion).
"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 IMF said in a statement on Wednesday.
Kenya is grappling with acute
liquidity challenges amid uncertainty over its ability to access funding from
financial markets before a $2 billion (Ksh.319 billion) Eurobond matures in
June.
The government has said that,
together with expected funds from the World Bank and regional banks like the
African Export-Import Bank and Trade & Development Bank, the IMF funds will
help Kenya to pay the looming foreign debt maturity without running down its
hard currency reserves.
Kenya's balance of payments
and financial positions have also been strained by the legacy of the COVID-19
pandemic and frequent climate change-induced droughts, according to the IMF,
while its shilling currency has weakened.
The approval of the new IMF
money followed a staff-level agreement reached with Kenyan officials
in November, with slight differences in dollar values due to currency
fluctuations in the IMF Special Drawing Rights unit of account.
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