The International Monetary Fund (IMF) gave the green light for a new loan to Kenya to alleviate the country's financial pressure.
In a statement, on Wednesday, January 17, the Washington-based agency said it has boosted the East African Country with a loan boost of $941.2 million (Ksh150 billion) with an immediate disbursement of $624.5 million (Ksh99.6 billion).
"The IMF Executive Board today approved augmentation of Kenya’s current arrangements with the IMF by $941.2 million with immediate disbursement of $684.7 million to support the country’s economic reform program and climate policies," the IMF stated in a press release.
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The IMF Executive Board noted that Kenya, like many other countries, has been grappling with economic uncertainties on a global scale.
The IMF said the funds injected are expected to boost Kenya's economy, providing the necessary resources to withstand financial pressures and implement essential reforms.
"Kenya’s growth remained resilient in the face of increasing external and domestic challenges. The EFF/ECF and RSF arrangements continue to support the authorities' efforts to sustain macroeconomic stability," the statement added.
IMF projected that Kenya's economic growth will be approximately five per cent in the current year, down slightly from the estimated 5.1 per cent in 2023.
"The Kenyan economy remains resilient against a challenging global backdrop even as it recovers from the legacy of the COVID-19 pandemic and the worst multi-season drought over the past two years. The economy expanded by 5.6 per cent y/y in the first nine months of 2023, driven by a strong recovery in agriculture which also helped lower both overall and food inflation," IMF stated.
