Kenya and the International Monetary Fund have reached a staff-level agreement on the first review of its economic program under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF).
“The agreement is subject to the approval of IMF management and the Executive Board in the coming weeks. Upon completion of the Executive Board review, Kenya would have access to SDR 285 million (equivalent to about US$410 million),” said Mary Goodman, IMF team leader-Kenya.
The IMF staff project the economy to expand by 6.3 per cent in 2021.
However, they noted that the coronavirus shock had reversed some of the poverty reduction gains Kenya achieved in recent years and debt remains elevated.
“Nevertheless, it is important to keep in mind that Kenya’s prospects are strong, and in the medium-term growth is expected to settle at its potential of just above 6 per cent. Overall, the authorities and the IMF agree on the important role the IMF program is playing in supporting Kenya’s long-term economic vitality and in helping Kenya respond to shocks given that uncertainty about the future path of the pandemic continues to tilt economic risks to the downside.”
The team met with Cabinet Secretary for the National Treasury and Planning, Mr Ukur Yatani; Governor of the Central Bank of Kenya (CBK), Dr Patrick Njoroge; Deputy Chief of Staff, Executive Office of the President, Mrs Ruth Kagia; the Principal Secretary for the National Treasury, Dr Julius Muia; Deputy Governor of the CBK, Ms Sheila M’Mbijjewe; and other senior government and CBK officials.
It also had discussions with representatives of the Parliamentary Budget Office, the private sector, civil society organizations, and development partners.”