NAIROBI, Kenya, Jan 18 – The Board of the International Monetary Fund (IMF) has approved Sh152 billion ($942.2 million) to Kenya under the Extended Fund Facility (EFF) as well as the Extended Credit Facility (ECF).
Kenya will now access Sh100.59 billion ($624.5 million) from the facility.
In April 2021, the World Bank lending arm approved EFF and ECF before extending them by 10 months from July 2023 to April 2025, as well as issuing the first Resilience and Sustainability Facility (RSF) in July 2023.
A total of $60.2 million in RSF will be accessed right away as well.
This now brings the total funds disbursed under the EFF and ECF arrangements to about Sh419.9 billion ($2.6 billion).
“Kenya’s growth remained resilient in the face of increasing external and domestic challenges,” Antoinette Sayeh, Deputy Managing Director and Acting Chair at the IMF, said.
“The EFF/ECF and RSF arrangements continue to support the authorities’ efforts to sustain macroeconomic stability, strengthen policy frameworks, withstand external shocks, push forward key reforms, and promote more inclusive and green growth.”
The IMF adds that Kenya’s economy remains resilient amid global challenges such as drought and the aftermath of the Covid-19 pandemic.
“The near-term outlook is one of continued resilience with growth projected at around 5 percent in 2024 amid ongoing adjustments in the fiscal policy and external accounts,” IMF said.
“Inflation is expected to inch up in the first half of 2024, driven primarily by global oil price volatility and exchange rate passthrough, but to remain contained due to the recent monetary policy tightening and as the authorities strive to deliver a stronger fiscal consolidation to stabilize the overall public debt/GDP in 2024.”
“Notwithstanding the elevated downside risks in the near term, the authorities should be resolute in their actions to help keep confidence anchored.”
