The International Monetary Fund (IMF) will meet on Wednesday to complete the sixth review of its arrangement with Kenya.
The meeting will among other things decide whether to give the go-ahead on the disbursement of fresh funds to the county.
IMF is expected to wire Sh109 billion, inclusive of the expansion of resources under the extended fund facility (ECF) and extended credit facility (ECF) and the first review of the resilience sustainability facility (RSF).
Fresh funding would bring the IMF’s financial support disbursed under the arrangements to Sh427 billion.
Proceeds from the review are set to support Kenya's foreign exchange reserves, with the State expected to draw on the buffer to meet the Sh319 billion ($2 billion) Eurobond maturing in June.
Fresh disbursements from the IMF are expected to be crucial to Kenya’s quest of successfully navigating the maturity of the Eurobond in June amid challenges in accessing the international capital markets.
Kenya's international bonds rose modestly on the news, with the $2 billion note maturing in June 2024 rising the most.
A staff team from the IMF led by Haimanot Teferra visited Nairobi between October 30 and November 15 last year and held discussions on the pending reviews.
“Despite continued commitment to the implementation of the IMF-supported economic programme, uncertainty looms over Kenya’s effective access to international bond markets,” said Teferra.
The country has been grappling with acute liquidity challenges caused by uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures next June.
