The International Monetary Fund (IMF) has given the government of Kenya 34.5 billion shillings to help the post-Covid-19 economic recovery but Kenyans have other thoughts on how the cash will be used.
The Central Bank of Kenya expressed optimism that the 34.5 billion shillings will be approved by the IMF Board next week with expectations it will be discussed on Friday, April 2.
“The bottom line is that the program will support our COVID-19 response and budget support. It anchors fiscal consolidation through revenue-driven policies which minimize debt vulnerabilities. This is the key element of the program,” said Dr. Patrick Njoroge, Governor of Central Bank.
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In February, Kenya’s deal with the International Monetary Fund 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.
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According to the latest International Monetary Fund (IMF) report, Kenya spent approximately 250 billion shillings by the end of last year to fight the social-economic pressures of Covid-19.
The summary of the country’s fiscal measures in response to the Covid-19 pandemic as compiled by IMF shows that the country spent $2.3 billion on non-health measures and $100 million on healthcare.