Nearly Ksh150 billion in unpaid debts, including a Ksh 118.1 billion ($1 billion) syndicated loan from the international financial markets, remained unpaid at the end of the National Treasury’s previous fiscal year.
On July 18, the International Monetary Fund (IMF) Executive Board is anticipated to convene to authorize the delivery of a loan to Kenya worth Ksh28.8 billion ($244 million).
It is anticipated that the distribution will be the third installment of a more extensive, three-year loan package worth Ksh276.3 billion ($2.34 billion) that was established in February 2021.
Kenya’s third review under the Extended Fund Facility (EFF) and the Extended Credit Facility are now scheduled on the IMF’s updated Executive Board Calendar (ECF).
However, it is anticipated that the loan distribution would occur almost three weeks later than scheduled and after the fiscal year 2021–2022, when the facility was expected.
The third formal assessment of the 38-month program took place in April after an agreement at the staff level was achieved between Kenyan officials and IMF staff.
The additional disbursements are now anticipated to be appropriated by the National Treasury under the revised 2022–23 budget, whose implementation started on Friday last week.
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Nearly Ksh150 billion in unpaid debts, including a Ksh 118.1 billion ($1 billion) syndicated loan from the international financial markets remained unpaid at the end of the National Treasury’s previous fiscal year.
While the exchequer has failed to close the loan, which was also anticipated before the end of last month, the National Treasury had approached several top international banks to tap the syndicate by mid-June.
Ukur Yatani, the National Treasury Cabinet Secretary, stated earlier this week that the exchequer had not yet heard from international banks on investor interest in the syndicated loan.
“We haven’t finished; we’re still talking to the banks. We have not yet heard back from the banks,” said CS Yatani on Tuesday.
The new loan wire from the IMF is anticipated to bring the three-year loan program’s total pay-outs to Ksh141.7 billion ($1.2 billion).