DEBT CRISIS

Kenya to receive another Sh28 billion loan from IMF

Kenya would now have access to the loan once the review is formally completed.

In Summary

•The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks.

•The amount is aimed at cushioning the country from adverse economic implications brought about by Covid-19 pandemic.

The International Monetary Fund logo is seen inside its headquarters at the end of the IMF/World Bank annual meetings in Washington, U.S., October 9, 2016
The International Monetary Fund logo is seen inside its headquarters at the end of the IMF/World Bank annual meetings in Washington, U.S., October 9, 2016
Image: REUTERS

The International Monetary Fund ( IMF) has reached a staff agreement to advance Sh28 billion loan to Kenya as part of the $2.3 billion Special Drawing Right (SDR) 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 review, Kenya would have access to $244 million, bringing the total IMF financial support under these arrangements to about $1.17 billion (Sh134.5 billion).

The amount is aimed at cushioning the country from adverse economic implications brought about by Covid-19 pandemic.

The lender says Kenya is on track with its fiscal correctness, especially on debt management.

The country has gradually cut on expensive external commercial debt in the 2022/23 budget and is set to cut the debt limit to 55 per cent of GDP.

The country's debt currently sits at Sh8.2 trillion or 69.8 per cent of GDP.

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