The International Monetary Fund has clarified that Kenya still has access to the $1.5 billion (Sh152 billion) standby credit facility last June.
In a statement,
IMF resident representative in Nairobi, Jan Mikkelsen said that the facility is available until the end of March.
"The precautionary SBA/SCF arrangement remains in place until end-March 2018. The second and third reviews of the program, due respectively in June and December 2017, could not be completed on schedule as an agreement could not be reached on stronger fiscal policies, and discussions were postponed due to the prolonged election period," Mikkelsen said.
He added: "Kenya continues to have access to resources since June subject to policy understandings to complete the outstanding reviews."
The official said an IMF staff team is currently in Nairobi for discussions on a possible new program.
"We are hopeful for an agreement," Mikkelsen said.
He had on Tuesday been quoted by Reuters saying that Kenya's access to the facility had been lost due to lack of an agreement.
"The programme has not been discontinued, but access was lost in mid-June because a review had not been completed."
This led to questions on whether that the Central Bank and Treasury had been honest when giving economic reviews since June.
Over the past four MPC meetings, CBK Governor
Patrick Njoroge has said the availability of the IMF debt facility is one of the cushions in place in case the country is hit with extreme shocks.
In March 2016, the IMF offered Kenya the emergency loan to be used 24 months in case of external shocks.
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