The IMF has approved Sh152 billion standby funds for Kenya to cushion against any shocks that could affect the economy.
The amount comprises a standby arrangement
of about Sh100.5 billion and about Sh50.3 billion in standby credit.
Kenya's recent growth performance remains strong, the International Monetary Fund
said, but the economy is still vulnerable to global shocks.
A statement from the lender said the government has indicated it will continue to treat both funding arrangements as precautionary,
and does not intend to draw them, unless exogenous shocks lead to an actual balance of payments need.
“Today’s decision would make available SDR [Special Drawing Rights] 542.8 million (about Sh76.96 billion), and the remainder in four tranches upon completion of semi-annual programme reviews,” the IMF said.
IMF deputy managing director Mitsuhiro Furusawa
said the planned reduction of Kenya's fiscal deficit by three per cent of Gross Domestic Product over the next two years will be key to containing risks.
There are also public finance management reforms aimed at increasing efficiency, transparency and accountability.
