This archive report was first published on 7 May 2020.
On May 6, 2020, the Executive Board of the International Monetary Fund (IMF) approved a $739 million loan to Kenya to help the country combat the Covid-19 pandemic.
The loan, which will be disbursed under the Rapid Credit Facility (RCF), aims to address Kenya's urgent balance of payments needs and provide budget financing to respond to the pandemic.
According to the IMF, the impact of Covid-19 on Kenya's economy will be severe, with the pandemic affecting nearly all facets of the economy, particularly tourism, transport, and trade.
"This will help to meet Kenya's urgent balance of payments need stemming from the outbreak of the Covid-19 pandemic," said Tao Zhang, the IMF's Deputy Managing Director and Acting Chair.
The IMF has also emphasized the importance of Kenya resuming its fiscal consolidation plans once the crisis abates to reduce debt vulnerabilities.
As part of the loan agreement, Kenyan authorities plan to conduct independent post-crisis auditing of coronavirus-related expenditure and publish the results to ensure that Covid-19 funds are used for their intended purpose.
