This archive report was first published on 24 June 2021.
June 24, 2021
The International Monetary Fund (IMF) has approved an additional $407 million budgetary support for Kenya, bringing the total disbursements to $714.5 million.
The funds will support Kenya's socio-economic and structural reforms under its 38-month financing programme with the East African nation.
According to the IMF, Kenya's debt remains sustainable but it is at high risk of debt distress.
Kenya was hit hard by the Covid-19 pandemic, with the economy contracting to 0.1 percent in 2020 from 5.4 percent in 2019.
IMF Deputy Managing Director Antoinette Sayeh said the Kenyan authorities continue to demonstrate strong commitment to their fiscal reform agenda during this unprecedented global shock.
“Maintaining momentum on the structural reform agenda is important. The very substantial progress made in assessing the financial situations of state-owned enterprises (SOEs) that pose the largest fiscal risks provides a solid basis for identifying least-cost approaches to address their financial challenges, and should be complemented with efforts to improve oversight and management of SOEs more broadly,” added Ms Sayeh.
