This archive report was first published on 25 November 2019.
Published on November 25, 2019, the IMF confirmed that it will renew Kenya's $1.5 billion standby credit facility in early 2020, following a recent visit to Nairobi.
The IMF team, led by Mr. Benedict Clements, visited Kenya between November 18-22, 2019, to discuss recent economic developments and the government's reform plans.
Kenya's two-year IMF precautionary facility, signed in March 2016, expired in March 2018 but was extended up to September 2018. The Fund suspended its arrangement with Kenya in September 2018, after several conditions, including removal of the rate cap law, were not met.
However, with the removal of the lending cap law, the International Fund says the move will provide the Central Bank of Kenya (CBK) with room to tweak its monetary policy tools.
“Credit growth has remained low (6.6 percent year-on-year in October) but is expected to rise steadily because of the recent elimination of interest rate controls and deployment of innovative credit products targeting small enterprises,” said Mr. Benedict Clements.
The IMF forecast Kenya's economy to accelerate its growth in the second half of this year and 2020, despite the late onset and below-average rainfall that affected agriculture production.
