IMF Approves $941m Lending Boost To Alleviate Kenya’s Financial Strain
The IMF greenlights a $941 million lending boost for Kenya, providing immediate relief with a $624.5 million disbursement under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programmes.
THE IMF on Wednesday approved a $941 million lending boost to Kenya, with an immediate disbursement of $624.5 million, offering some relief to the East African country as it battles financial pressures.
The disbursement under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs will also be topped by a release of $60.2 million under the Resilience and Sustainability Facility (RSF) arrangement.
‘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 IMF said in a statement on Wednesday.
Kenya is grappling with acute liquidity challenges amid uncertainty over its ability to access funding from financial markets before a $2bn Eurobond matures in June.
Kenya’s balance of payments and financial positions have also been strained by the legacy of the Covid-19 pandemic and frequent climate change-induced droughts, according to the IMF, while its shilling currency has weakened.