IMF, Kenya Reach Staff-Level Agreement to Release Ksh29.5 Bn

IMF Reaches Staff Level Agreement on the Second Reviews of the Extended Fund Facility and Extended Credit Facility for Kenya and Discusses the 2021 Article IV Consultation

The International Monetary Fund (IMF) and Kenya on Friday reached an agreement over reforms that would pave the way for the disbursement of USD 264.0 million (Ksh 29.5 billion)  if approved, it said in a statement.

This is a staff-level agreement on the second review of the 38-month Extended Fund Facility (EFF) and Extended Credit Facility (ECF) – funded program.

The disbursement would bring the total support from IMF to Kenya to USD 984.0 million (Ksh 109.8 billion) in 2021.

The IMF team was led by Mary Goodman and the meeting was conducted virtually with Kenya from October 12 to November 3, 2021.

The team said Kenya’s longer-term outlook remains positive. 

However, “There are significant uncertainties going forward. The COVID-19 pandemic remains a threat domestically and globally. Reducing debt vulnerabilities requires continued strong adherence to the multi-year fiscal consolidation effort supported by the IMF EFF/ECF arrangements with Kenya while safeguarding resources to protect vulnerable groups. The political calendar is also a source of uncertainty.”

Kenya’s next Presidential Elections are set to be held in August 2022.

CBK Commits to Reforms For Forward Looking Monetary Policy