This archive report was first published on 24 August 2021.
Kenya has earned Ksh80.8 billion in Special Drawing Rights (SDRs) from the International Monetary Fund (IMF), bringing its cumulative SDR allocations to Ksh120.6 billion.
SDRs are a form of foreign exchange reserves that member countries, including Kenya, accumulate by obtaining financing with the IMF. Transactions with the institution are expressed in SDR terms.
On Monday, the IMF Board of Governors approved a general allocation of SDRs equivalent to Ksh65 trillion (US$650 billion) to boost global liquidity.
According to the IMF, SDRs are interest-bearing international reserve assets created to enhance other insurance assets by member countries.
SDRs are not a loan or currency but can be claimed on free usable currencies of IMF members. Kenya can choose to sell the SDRs under voluntary arrangements for actual currency or hold them as part of its foreign exchange reserves.
IMF Managing Director Kristalina Georgieva said, "This is a historic decision – the largest SDR allocation in the history of the IMF and a shot in the arm for the global economy at a time of unprecedented crisis."
