The International Monetary Fund (IMF) said Monday it would soon disburse 262.69 billion shillings (about 2.4 billion U.S. dollars) to Kenya after reaching an agreement on a 38-month financial package.
The IMF said that its team and the Kenyan officials reached an agreement on a 38-month program to help the next phase of the country’s COVID-19 response and a strong multi-year effort to stabilize and begin reducing debt levels relative to GDP.
“I am pleased to announce that the Kenyan authorities and the IMF mission team have reached agreement on economic and structural policies that would underpin a 38-month program under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements for about US$2.4 billion,” Mary Goodman who led the IMF mission to Kenya said in a statement issued in Nairobi.
The deal now awaits the international lender’s board approval that will see the country receive the first tranche of close to Sh75 billion in the current financial year.
The IMF mission which was in Kenya from December 9 to 17 last year and from February 4 to 15, said the Kenyan economy is picking up from an unprecedented shock suffered as a result of the COVID-19 pandemic.
This will be the second time the country will be receiving the facility after the international lender disbursed Sh78 billion in May last year to help Kenya manage the social-economic pressures of Covid-19 that has since claimed over 2.4 million globally.