The Board of the International Monetary Fund (IMF) on April 2 2021 approved a US $ 2.34 billion Extended Fund Facility (EFF)/ Extended Credit Facility (ECF) arrangement program for Kenya. The program is to support resurgence of growth in the Kenyan economy after COVID-19 related shock and reduce debt vulnerabilities through a multi year fiscal consolidation pegged on raising revenues while controlling expenditure. The program however, is designed to safeguard resources to vulnerable groups and address weaknesses in State Owned Enterprises.
The program successfully went through the first and second reviews, the second review took place virtually from October 12 – 25, 2021. Further the IMF staff and the Kenyan authorities have reached a staff-level agreement on economic policies to conclude the third review. Kenya would access to about US$244 million in financing once the review is formally completed by the IMF Executive Board. The good program performance demonstrates Kenyan the commitment to the program and affirms the confidence the IMF has on Kenyan economic policies and the reforms that we have set out in the program. The review confirmed that the primary balance target for end December 2021 was met by a comfortable margin. In addition, the program performance criteria on debt guarantees and Central Bank of Kenya’s net international reserves were also met.
For more information, you can get the see the Cabinet Secretary’s press release of April 26, 2022 and the IMF staff press release of April 25, 2022 as well as other relevant information in the links below;
IMF Staff press release after third review