IMF reaches deal with Kenya on US $2.4 bln loan facility

The International Monetary Fund (IMF) said it would soon disburse 262.69 billion shillings (about US $2.4 billion) to Kenya after reaching an agreement on a 38-month financial package.

The IMF said that its team and the Kenyan officials reached an agreement on a 38-month program to help the next phase of the country’s Covid-19 response and a strong multi-year effort to stabilize and begin reducing debt levels relative to GDP, Xinhua news agency reported on Tuesday.

“I am pleased to announce that the Kenyan authorities and the IMF mission team have reached agreement on economic and structural policies that would underpin a 38-month program under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements for about US$2.4 billion,” Mary Goodman who led the IMF mission to Kenya said in a statement issued in Nairobi. “The staff-level agreement is subject to IMF management approval and executive board consideration, which is expected in the coming week.”

The IMF mission which was in Kenya from December 9 to 17 last year and from February 4 to 15, said the Kenyan economy is picking up from an unprecedented shock suffered as a result of the Covid-19 pandemic.

It said, however, despite the recovery, uncertainty remains in a durable return to the path of strong, sustainable, and inclusive growth.