, Washington, US, Mar 14 – The International Monetary Fund Executive Board has approved a 6-month extension of a Sh151 billion Stand-By Arrangement to cushion the country against external shocks.
IMF says the extension will allow time to complete the outstanding reviews which were delayed due to a prolonged election period.
Completion of the reviews will enable Kenya access the funds available under the precautionary arrangement.
IMF is keen to see the implementation of policies that will reduce the fiscal deficit and substantially modify interest controls.
The facility was initially approved in 2016 and was set to expire end of March.
The Deputy Managing Director of IMF’s Executive Board Min Zhu, had said that despite the recent growth record, Kenya’s economy remains vulnerable to shocks, hence the need for precautionary arrangements that will provide stability for continued macroeconomic reform.