The International Monetary Fund’s executive board on Monday made a deal of almost $1 billion as part of funding programme for Kenya to financially support in East Africa’s largest economy, it said.
After the board concluded the fifth evaluations, according to the IMF, under the Extended Fund Facility and Extended Credit Facility for Kenya, it extended the time period for such arrangements to 48 months from 38 months. This allowed for an immediate payout of around $415.4 million and gave Kenya more time to pursue reform.
To support the African country’s efforts for combatting climate, the IMF also signed an arrangement under its Resilience and Sustainability programme worth about $551.4 million. The agency lauded Kenya’s successful economic reforms and fighting against climatic challenges, even when it faced the worst draught in a decade.
According to IMF Deputy Managing Director Antoinette Sayeh, Monday’s announcement would enable Kenya to sustain market confidence, promote growth, and advance ongoing reforms. She added that approval of Kenya’s fiscal 2023-2024 budget and the 2023 Finance Act were “crucial steps” required to support present efforts and eradicate debt apprehensions while securing social and development expenditures.
A “prudent debt policy” and sustained attempts to give priority to concessional loans were also necessary because of the tighter financing conditions, she added.
