This archive report was first published on 18 December 2021.
On December 18, 2021, the International Monetary Fund (IMF) Executive Board approved the immediate disbursement of Sh29.2 billion to Kenya under the Extended Credit Facility. This move aims to support Kenya's program to address debt vulnerabilities and aid in the response to the COVID-19 pandemic.
The approval brings the total amount disbursed to the country for budget support to Sh100 billion. The IMF had previously approved a USD2.34 billion (Sh266 billion) aid package for Kenya in April 2021 to be disbursed over 38 months, under the Extended Credit Facility and the Extended Fund facility.
IMF Deputy Managing Director and Acting Chairperson of the Executive Board, Antoinette Sayeh, attributed the approval to Kenya's robust economic growth in the financial year 2020/2021. Sayeh noted that the additional support would further aid in making advances to the country's structural reform and anti-corruption agencies.
She emphasized the need for the Kenyan government to strengthen fiscal transparency, account for the utilization of the additional funds, and address legal impediments to begin publishing beneficial ownership information for awarded public tenders in early 2022.
“The Kenyan authorities remain firmly committed to their economic program in a challenging environment. Some additional fiscal space is needed in FY 21/22 for emergency spending to face the drought in the north and emerging security needs; the planned supplementary budget should also provide resources for expanding state-owned enterprises (SOEs) support, in line with program design,” Sayeh said.
