Wednesday, November 9, 2022 – President William Ruto’s government is set to receive USD433million (Sh52.7 billion) from the International Monetary Fund (IMF) as part of the USD2.34 billion (Sh284.8billion) facility approved in April last year.
The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks.
“Upon completion of the Executive Board review, Kenya will have access to USD433 million, bringing the total IMF financial support under these arrangements to US$1,548 million,” IMF said in a statement.
The funds will assist Kenya to cover external financing needs resulting from drought and challenging global financing conditions.
“The Kenyan economy has been resilient in the face of a challenging environment. Food insecurity has increased due to severe drought in parts of the country. Higher food and energy prices have pushed up inflation and pressured the external position,” the IMF said.
The Washington-based institution further noted that the peaceful completion of the country’s elections lifted uncertainty and credit to the private sector is expanding.
IMF projects growth at 5.3 percent in 2022 amid domestic policy tightening and a global slowdown that are likely to also weigh on growth in 2023.
The medium-term outlook remains favorable, supported by proactive reform efforts by the new government.
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