With an immediate payout of $624.5 million (Ksh.99.6 billion), the International Monetary Fund (IMF) granted a $941 million (Ksh.150 billion) financing boost to Kenya on Wednesday, providing some respite to the East African nation as it fights financial difficulties.
A release of $60.2 million (Ksh.9.6 billion) under the Resilience and Sustainability Facility (RSF) arrangement will also surpass the payout under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs.
With the executive board’s approval, the IMF has committed more than $4.4 billion (Ksh. 701.8 billion) in funding to Kenya across all three facilities.
“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.
In the midst of uncertainty over its capacity to obtain money from financial markets before to the $2 billion (Ksh.319 billion) Eurobond maturing in June, Kenya is facing severe liquidity issues.
The government has stated that the IMF funds will assist Kenya in meeting its impending foreign debt maturity without depleting its hard currency reserves, together with anticipated funding from the World Bank and regional banks like the African Export-Import Bank and Trade & Development Bank.
The COVID-19 pandemic’s aftermath and recurrent droughts brought on by climate change have also put a pressure on Kenya’s financial positions and balance of payments, according to the IMF, and the value of the shilling has declined.