Kenya Acquires Ksh 262 Billion From IMF For Covid-19 Recovery

By Clinton Ochieng

Kenya’s deal with the International Monetary fund has just landed a whopping 262 billion shillings to facilitate recovery from the Covid 19 pandemic.

The fund is to dispense a 38-month staff level financing package for the economy under its Extended Fund Facility(EFF) and Extended Credit Facility (ECF) arrangements. The agreement is still subject to the fund’s management approval and the executive board consideration expected in the coming weeks.

“The program will support the next phase of the country’s Covid-19 response and the authorities’ plans for a strong multi-year effort to stabilize and begin reducing debt levels relative to GDP,” Mary Goodman who led the International Monetary Fund mission to Kenya said in a statement issued in Nairobi

The pandemic extremely damaged East Africa’s largest economy, hitting tax revenue as movement restrictions weighed on a day-to-day activity.

The fiscal deficit may widen to 8.9 percent of GDP this year as the government borrows more to enhance economic recovery and support businesses and households.

Kenya is currently thriving on the wheels of debts. The national debt currently stands at 10.4 trillion shillings, above the ceiling set by the Senate at 9 trillion shillings.

About the author

Clinton Odongo is a journalist with a nose for news that cuts across socioeconomic issues.