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 includes a US$2.34 billion finance package approved by the IMF Board in April 2021.
The three-year financing package aims to support Kenya's next phase of COVID-19 response and its plan to reduce debt vulnerabilities while safeguarding resources to protect vulnerable groups.
As part of the programme, Kenya has implemented a broader reform and governance agenda, including addressing weaknesses in some state-owned enterprises (SOEs) and strengthening transparency and accountability through an elaborate anti-corruption framework.
Kenya's National Treasury and Planning Ministry stated that the IMF Executive Board is expected to make an announcement on the outcome of the virtual review 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 all 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."
