In a statement dated Monday, December 19, the International Monetary Fund (IMF) approved a Ksh55, billion ($447.39 million) to Kenya.
This was the fourth disbursement of the Ksh255 billion loan agreed upon by IMF and retired President Uhuru Kenyatta in April 2021.
The 38-month-long loan to Kenya was aimed at boosting the county's economy, especially during the pre-pandemic era.
“Kenya’s commitment to its economic program supported by the Fund’s Extended Fund Facility and the Extended Credit Facility arrangements is anchoring debt sustainability," Antoinette Sayeh, the IMF Deputy Managing Director, stated.
She noted that the country's economy performed well amid the slow-growing global economy, tighter financing conditions, and volatile commodity prices.
In addition, she concluded that prudent macroeconomic policies and resolute implementation of structural reforms were essential in safeguarding positive medium-term prospects.
IMF also commended President William Ruto's move to eliminate petrol subsidies while praising the plans to significantly reprioritise the expenditure to keep the fiscal deficit below the budgeted level.
"Looking ahead, continued strong commitment to fiscal consolidation over the medium term remains key to reducing debt vulnerabilities," IMF added.
When IMF approved the loan, it set strict regulations that Kenya had to comply with or risk the consequences.
For instance, Kenya was expected to enforce a wealth declaration policy for all public servants to curb corruption.
Kenya was also expected to demand that all companies submit accurate, complete, and updated beneficial ownership information to the Registrar of Companies.
"These reforms must be instituted in selected parastatals to return them into profit-making or improve their efficiency," read part of the statement issued in April 2021.
