The International Monetary Fund (IMF) has increased its lending program to Kenya by Ksh98 billion. This decision comes as Kenya faces the maturity of a Ksh300 billion Eurobond in June 2024.
Following a recent visit by an IMF delegation,President Ruto’s Chief Economic Advisor David Ndii disclosed that the IMF’s lending program had been expanded to a total of US dollars 650 million (Ksh98 billion). While the IMF has yet to release an official statement regarding the outcome of the sixth review, Ndii indicated that the visit was successful.
“As of now the 2024 Eurobond is fully funded. The refinancing is fully funded…It (IMF) can augment our program as of now up to US dollars 650 million, that they have agreed to do,” David Ndii said.
The announcement follows Ndii’s previous criticism of the former Kenyan President, Uhuru Kenyatta, for canceling a Ksh116 billion Eurobond shortly before the 2022 general election. A move which according to him led to increased borrowing through syndicated bank loans, pushing Kenya’s public debt past the Ksh10 trillion mark according to a report by Reuters.
The IMF had in July provided Ksh146 billion to Kenya, with Ksh56 billion allocated to strengthen the economy and foreign exchange reserves, and the remaining funds intended to enhance Kenya’s resilience against climate change.
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Haimanot Teferra, the IMF Mission Chief for Kenya, stressed that the approval of the Ksh146 billion loan was contingent upon Kenya’s presentation of a viable and robust repayment plan. “The authorities demonstrated their ability to provide us with contingency plans for the loan repayment,” she said.