This archive report was first published on 7 November 2021.
On November 7, 2021, the International Monetary Fund (IMF) announced the completion of its second review of Kenya's 38-months lending programme, which was approved in April 2021 with a US$2.34 billion finance package.
The three-year financing package aims to support Kenya's next phase of COVID-19 response and reduce debt vulnerabilities while safeguarding resources to protect vulnerable groups.
As part of the programme, Kenya has set stiff conditionalities to address weaknesses in some state-owned enterprises (SOEs) and strengthen transparency and accountability through an elaborate anti-corruption framework.
IMF Executive Board to Make Announcement in December ¶
According to a statement from Kenya's National Treasury and Planning Ministry, an announcement from the IMF Executive Board on the outcome of the virtual review is expected in December 2021.
The IMF mission focused on Quarterly Performance Criteria, Indicative Targets, the Monetary Policy Consultation Clause, and Structural Benchmarks for State-Owned Enterprises that Kenya had set for itself.
Kenya has achieved targets relating to debt and debt guarantees as well as CBK's net international reserves, tax revenue collection, and priority social spending by the national government.
Ukur Yatani, Cabinet Secretary- Ministry of National Treasury and Planning, said, 'Under this 3-year programme, we set ourselves structural benchmarks through which we seek to transform the fiscal governance in state-owned enterprises, improve transparency, and reinvigorate anti-corruption measures and strengthen public accountability in procurement.'
Kenya has also implemented a structural benchmark relating to the provision of comprehensive information on the public procurement portal, including beneficial owners of firms that are awarded public tenders.
