This archive report was first published on 7 May 2020.
Kenya Secures Sh79.3 Billion IMF Loan to Combat COVID-19 ¶
On May 7, 2020, the International Monetary Fund (IMF) approved a Sh79.3 billion loan to Kenya to help the country combat the COVID-19 pandemic.
The loan, which is the second significant credit facility Kenya has received from a Bretton Woods institution in the last two months, will help the country meet its urgent balance of payments needs stemming from the outbreak of the pandemic.
According to the IMF, the impact of COVID-19 on Kenya's economy will be severe, with the lender noting that the pandemic has impacted 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," the IMF said in a statement.
The IMF loan will also provide much-needed resources for fiscal interventions to safeguard public health and support households and firms affected by the crisis.
Kenyan authorities plan to conduct independent post-crisis auditing of coronavirus-related expenditure and publish the results to ensure that COVID-19-related resources are used for their intended purpose.
"The Central Bank of Kenya (CBK) has taken various measures to maintain sufficient liquidity in the financial sector. It should continue to stand ready to further support the economy and the financial sector's health, as necessary, while ensuring that policy decisions are data-driven," the IMF added.
