This archive report was first published on 7 May 2020.
On May 7, 2020, the International Monetary Fund (IMF) approved the disbursement of US$739 million (approximately Sh78.3 billion) to support Kenya's efforts to combat the COVID-19 pandemic.
The funding, drawn from the Rapid Credit Facility (RCF), aims to help Kenya meet its urgent balance of payments needs stemming from the pandemic.
According to the IMF, the loan will enable Kenya to maintain an adequate level of international reserves and provide the necessary budget financing to respond to the pandemic.
IMF Deputy Managing Director and Acting Chair Tao Zhang stated that the COVID-19 pandemic has delivered a large economic shock to Kenya, impacting nearly all facets of the economy, particularly tourism, transport, and trade.
“Emergency financing under the RCF will deliver liquidity support to help Kenya cover its balance of payments gap this year. It will provide much-needed resources for fiscal interventions to safeguard public health and support households and firms affected by the crisis. It will also catalyze necessary financing from other donors,” Zhang said.
However, the IMF's decision has been met with concerns over accounting inconsistencies, with reports of the government's extravagant use of funds sourced from the World Bank. President Uhuru Kenyatta had previously hinted at the need for transparency, stating, “All money that will be used during this period will be accounted for after we overcome this challenge.”
The Kenyan government has committed to conducting independent post-crisis auditing of COVID-19 related expenditures and publishing the results.
