IMF Approves $1 Billion for Kenya After Latest Loan Review

Addis Ababa, July 18, 2023 (FBC) – The International Monetary Fund (IMF) has approved almost $1 billion for Kenya, saying the country had met conditions for continued financing under programs to help reform the economy and confront challenges posed by climate change, according to Bloomberg.

Kenya got a $415 million disbursement under the Extended Fund Facility and Expanded Credit Facility, programs designed to shore up its economy and boost its foreign exchange reserves, following a fifth review.

It also got $551 million as part of the Resilience and Sustainability Facility to “support Kenya’s ambitious efforts to build resilience to climate change,” the IMF said in a statement.

The IMF said Kenya had made good progress in implementing economic reforms despite facing the worst drought in decades, as well as a challenging external environment.

IMF Deputy Managing Directory Antoinette Sayeh said Monday’s actions would allow Kenyan authorities to continue to address such challenges, sustain market confidence, promote growth, and advance ongoing reforms.

She said approval of Kenya’s fiscal 2023-2024 budget and the 2023 Finance Act were “crucial steps” needed to support ongoing consolidation efforts and reduce debt vulnerabilities while protecting social and development expenditures.

Tighter financing conditions also required a “prudent debt policy” and continued efforts to prioritize concessional loans, she said.