The International Monetary Fund on Monday, July 17, advanced a Ksh142 billion loan to Kenya after meeting all the conditions following a successful fifth review.
The money is expected to ease pressure on Treasury coffers which the global lender expects would help the country in economic and climate reforms.
According to IMF, Ksh56 billion is meant to shore up the country’s economy and boost its foreign exchange reserves.
The money comes at a time the country is still facing pressure on the shilling, with the govt-to-govt oil deal that was expected to save the local currency achieving very little.
EFG Hermes Research on Friday, July 17, noted that Kenya needed the IMF loan to shore up its foreign reserves as a Ksh283 billion Eurobond was maturing in June 2024.
The rest of the money was given under IMF’s Resilience and Sustainability Facility Program which is meant to be strictly used for building resilience against climate change.
“Kenya’s economy has been resilient despite the worst drought in many decades and a difficult external environment.
“The funds will continue to support the country address emerging challenges to sustain macroeconomic stability and market confidence, promote growth and advance ongoing reforms,” IMF stated during the disbursement.
In total, Kenya has received Ksh283 billion from IMF for economic development and to fight the ravages of climate change.
On Sunday, July 16, President William stated that he was happy that following a successful COP27 meeting in Egypt, the continent was receiving more funds to fight climate change and its adverse effects.
“This shows that Africa can speak in one voice and contribute to global development and climate action,” the President stated following successful lobbying to have developed nations advance funds to developing nations to fight climate change.
On Thursday, June 22, Ruto requested the IMF and World Bank to lessen the grip they had on resources granted to African countries. He requested all countries to be advanced funds under equitable terms.
IMF in response noted it would readjust precautionary measures imposed on some of its members.
