The International Monetary Fund (IMF) has approved a Sh28 billion disbursement to Kenya as part of its 38-month Extended Fund Facility (EFF) and Extended Credit Facility (ECF) program, following a third policy review conducted between March 31 and April 22.
The review evaluated progress on economic reforms under the Uhuru Kenyatta administration, with the IMF highlighting Kenya’s adherence to fiscal targets and advancements in governance and anti-corruption initiatives.
"Kenya’s fiscal position has been supported by strong tax revenue growth this year, driven by economic recovery and implemented tax policies aimed at reducing debt vulnerabilities," the IMF stated.
The funding is expected to mitigate the impact of rising global energy and fertilizer prices on Kenyan households and businesses, while the lender commended efforts to restructure state-owned enterprises like Kenya Airways and Kenya Power.
Kenya Airways is set to receive Sh36.6 billion in 2023 to address liquidity challenges from the pandemic, with the government directing the airline to reduce its network and flight frequencies. The IMF emphasized the need for Kenya Power and Lighting Company (KPLC) to finalize a profitability plan by 2023 to avoid budgetary strain.
The institution also acknowledged the Central Bank of Kenya’s progress in strengthening monetary policy frameworks, noting the banking sector’s resilience amid economic challenges.
