Breaking News: IMF Approves Massive Ksh.78 Billion Loan

The International Monetary Fund (IMF) has approved a Ksh.78 billion loan for Kenya.

This new funding aims to support Kenya’s economic reforms, strengthen public finances, and promote sustainable growth.

The IMF’s loan approval is expected to provide a financial boost, helping Kenya tackle debt management, inflation, and economic recovery efforts amid global economic challenges.

The review follows the IMF’s recent meeting to finalize the seventh and eighth evaluations, a process previously disrupted in early June due to anti-government protests.

After the meeting, the IMF expressed confidence that the funds would help address Kenya’s challenges in revitalizing its economic standing.

The three IMF programs in Kenya

The IMF currently operates three programs with Kenya: the Extended Fund Facility (EFF), the Extended Credit Facility (ECF), and the Resilience and Sustainability Facility (RSF).

The EFF and ECF are designed to support countries with structural challenges in managing inflation and stabilizing their economies over time.

The main distinction between the two lies in their duration: the EFF offers a four-year restructuring period, while the ECF can extend up to five years.

The Resilience and Sustainability Facility (RSF) focuses on supporting a country’s climate initiatives.

According to the IMF, Kenya will now receive Ksh.62.5 billion under the EFF/ECF program and Ksh.15.4 billion through the RSF.

Under the EFF/ECF, the IMF projected that Kenya could still make strides in strengthening its economic stability.

At the close of the meeting, IMF Deputy Managing Director Gita Gopinath affirmed the board’s commitment to helping Kenya build resilience to economic shocks and climate risks.

“Kenya’s economy remains resilient, with growth above the regional average, declining inflation, and external inflows that bolster the shilling and strengthen external buffers, despite a challenging socio-economic landscape,” Gopinath said.

“The EFF/ECF and RSF arrangements continue to support efforts to anchor macroeconomic stability, lower debt risks, advance reforms, and mitigate climate-related challenges.”