Kenya to get Sh28 billion loan from International Monetary Fund (IMF)
The IMF has reached an agreement to advance Sh28 billion loan to Kenya as part of the 38-month IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF)financed program.
The agreement is the third review of the economic policies program which took place between March 31 and April 22.
The review focused on discussing progress on reforms and policy priorities undertaken by the Uhuru Kenyatta-led Government.
The lender noted that Kenya is on track to meet its fiscal objectives and has made progress and is moving forward on its governance and anti-corruption agenda
“Kenya’s fiscal position has been underpinned by strong tax revenue performance this year, buoyed by a robust economic recovery and the important tax policy measures already undertaken as part of Kenya’s multi-year plan to reduce debt-related vulnerabilities,” the lender said.
The funds, IMF said, have brought resilience that will allow cushioning part of the impact of the sharp increase in global energy and fertilizer prices on households and businesses.
Further, it lauded Kenya for making progress on restructuring state-owned enterprises including Kenya Airways and Kenya Power whose ongoing restructuring effort was deemed important to minimize costs to the Exchequer.
KQ will receive an Sh36.6 billion bailout in the year starting July as part of efforts to minimize cash-flow constraints following global lockdowns triggered by the Covid-19 pandemic
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