Kenya is set to receive a further Ksh.52.7 billion ($433 million) from the International Monetary Fund (EFF & ECF), Extended Fund and Extended Credit Facilities
This follows after the conclusion of the IMF staff mission In Kenya which represented the fourth review of the 38-month program with the multilateral lender.
The disbursement will include Ksh.15.5 billion ($127.4 million) additional to help the country finance drought needs and debt vulnerabilities.
The IMF staff was in the country between October 25 and November 8.
They commented on the progress the country has been making in addressing debt vulnerabilities against a challenging domestic and external environment.
“There has been good progress on fiscal adjustments needed to address debt vulnerabilities through pressures remain elevated. The authorities are taking forceful measures to further reduce the fiscal deficit. Fuel subsidies were mostly eliminated in September and the variable cost adjustments in electricity prices reinstated,” the IMF said in a statement issued Tuesday night.
“In addition, the new government is in the process of formulating a supplementary budget for the 2022/23 financial year that will institute significant spending cuts to modestly reduce the deficit from the previously programmed level of 5.9 percent of GDP.”
The IMF staff met the President of Kenya William Ruto, the newly appointed treasury cabinet secretary Prof. Njuguna Ndung’u and CBK Governor Dr. Patrick Njoroge.
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The IMF also talked about the state-owned agencies and urged transparency in the agencies especially Kenya Airways and Kenya power.
At the end of the program, Kenya is expected to have received Ksh.284.6 billion ($2.34 billion). The program expires on June 30th, 2024, and was started next year in February.
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