Kenya Set To Get 48 Billion Shillings From IMF

The International Monetary Fund (IMF) said on Monday 17^th May it had reached an agreement to move forward on the disbursement of 48 billion shillings to Kenya as part of an aid package approved in April.

In a statement issued on Monday, May 17, Mary Goodman who led the IMF team to the country indicated that Kenya met conditions for the US$410 million facilities.

The IMF approved a $2.34 billion aid package for Kenya in April, to be disbursed over 38 months, under the Extended Credit Facility and the Extended Fund Facility, the first review of which took place over the last several weeks.

“IMF staff commend the authorities’ decisive policy actions to contain the Covid-19 outbreak. Their actions helped to cushion the blow to the economy and maintained the momentum necessary to advance their economic reform agenda,” reads an excerpt of the statement.

The statement also hailed Kenyan authorities’ efforts to increase transparency and fight corruption.

They added that with the easing of the third wave of Covid-19 infections compared to high levels seen into April, containment measures have been lifted.

The authorities have also launched a Covid-19 vaccination program, and the IMF program is designed to support Kenya’s efforts to accelerate and expand vaccinations

The IMF and the Kenyan authorities agreed that the IMF was playing an important role in supporting Kenya’s long-term economic vitality.

“Economic recovery is underway and the easing of the Covid-19 third wave in Kenya suggests activity should continue picking up, but the environment for policymaking remains subject to uncertainty,” the IMF’s statement said.

IMF also praised the Kenya authorities for their efforts to increase transparency and fight corruption.

According to IMF, the authorities plan to adopt a common payroll system at the national and county level that should help contain spending growth and limit the scope for corruption.