Fresh Loan For Kenya IMF Approves Sh261b
The International Monetary Fund (IMF) has approved a crucial Sh261 billion credit facility for Kenya under a three-year programme.
The money is expected to help the country reboot the economy following the adverse effects of the Covid-19 pandemic amid shrinking revenues.
In a statement released on Monday, the IMF said the combined 38-month programme under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) is also aimed at helping the country reduce its debt vulnerabilities.
The staff-level agreement is a culmination of two virtual meetings between Kenyan authorities and an IMF team led by Mary Goodman from December 9 to 17 last year and February 4 to 15 this year.
“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 programme under the EFF and ECF arrangements for about $2.4 billion (Sh261 billion),” said Ms Goodman.
The team met senior government officials, including the National Treasury Ukur Yatani Cabinet Secretary, the Governor of Central Bank of Kenya Dr Patrick Njoroge and Head of Public Service Joseph Kinyua.
The agreement now awaits the approval of the Executive Board, the IMF’s highest decision-making organ.
The programme will also see Kenya undertake some significant restructuring of some of its struggling State-owned enterprising reminiscent of the 1990s-style structural adjustment programme that left thousands of public servants without jobs.