This archive report was first published on 7 May 2020.
Published on May 7, 2020, the IMF has approved a Ksh78 billion ($739 million) disbursement to Kenya under the Rapid Credit Facility (RCF) to address the country's urgent balance of payments needs.
The COVID-19 pandemic has significantly reduced Kenya's economic growth, creating fiscal and external financing needs. The funds will allow Kenya to maintain an adequate level of international reserves and provide budget financing needed to respond to the pandemic.
According to IMF Deputy Managing Director and Acting IMF Board Chair Tao Zhang, "The COVID-19 pandemic has delivered a large economic shock to Kenya. The pandemic has impacted nearly all facets of the economy—particularly tourism, transport, and trade—and led to urgent balance of payments and fiscal financing needs. Emergency financing under the RCF will deliver liquidity support to help Kenya cover its balance of payments gap this year."
The Kenyan government remains committed to fiscal consolidation plans once the crisis abates to reduce debt vulnerabilities. The IMF is ready to provide policy advice and further support the Kenyan authorities, as needed.
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