IMF To Disburse Ksh 28 Billion Loan To Kenya

The International Monetary Fund (IMF) has reached a staff agreement to advance Kenya a Sh 28 billion loan as part of the $244 million SDR approved in April last year.

IMF To Disburse Ksh 28 Billion Loan To Kenya

This follows a staff level agreement between the multilateral lender and Kenyan authorities on economic evaluations, marking the third review of a 38-month loan package worth Ksh.270.7 billion ($2.34 billion).

The accord will be subject to IMF management and the Executive Board's formal approval in the following weeks.

Kenya will have access to $244 million once the evaluation is completed, bringing the total IMF financial support under these procedures to almost $1.2 billion (Sh 138.9 billion).

The money will be used to protect the country from the economic consequences of the Covid-19 outbreak.

Kenya, according to the lender, is on track fiscally, particularly in terms of debt management.

The debt of the country now stands at Sh8.2 trillion, or 69.8% of GDP. The country's expensive external commercial debt has been gradually reduced in the 2022/23 budget, with the debt limit planned to be reduced to 55% of GDP.