This archive report was first published on 7 May 2020.
On May 7, 2020, the Executive Board of the International Monetary Fund (IMF) approved the disbursement of Sh78.3 billion to Kenya under the Rapid Credit Facility (RCF).
The funds are aimed at helping Kenya meet its urgent balance of payments needs stemming from the COVID-19 pandemic, which has severely impacted the country's economy.
According to the IMF, the COVID-19 pandemic has delivered a large economic shock to Kenya, affecting nearly all facets of the economy, particularly tourism, transport, and trade.
IMF Deputy Managing Director Tao Zhang stated that emergency financing under the RCF will provide liquidity support to help Kenya cover its balance of payments gap this year.
“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.
The IMF has advised the Central Bank of Kenya (CBK) to continue supporting the economy and the financial sector's health, while ensuring that policy decisions are data-driven.
