WASHINGTON (Reuters) – The International Monetary Fund announced on Friday that it had reached a staff-level agreement with Kenya on a second review of IMF loan agreements that would free up around $ 264 million for the African country from l ‘Is upon Board approval in the coming weeks.
If approved, the disbursement would bring the total IMF financial support to Kenya to $ 984 million by 2021.
“Kenya’s economic rebound continues and the COVID-19 vaccination program has intensified,” IMF Kenya Chief of Mission Mary Goodman said in a statement, adding that the pandemic had affected Kenya’s Sustainable Development Goals.
“New challenges include drought in the northern regions of the country and emerging security needs. Energy prices are rising along with global oil prices, which, along with rising food prices, has pushed up headline inflation even though core inflation has remained stable, ”Goodman said.
The review of Kenya‘s Extended Finance Facility and Extended Credit Facility programs revealed that the Kenyan authorities remained committed to their economic reform agenda, the IMF said. Kenya had outperformed its fiscal targets for fiscal year 2020/21, and tax revenues have recovered so far in fiscal year 2021/22.
The IMF team shared the authorities’ assessment that space is needed in FY21/22 for emergency spending to cope with the drought in the north of the country and meet the needs of emerging security, ”Goodman said.
(Report by David Lawder, edited by Rosalba O’Brien)