This archive report was first published on 8 May 2020.
On May 8, 2020, the International Monetary Fund (IMF) approved a Sh78.7 billion loan to help Kenya address the economic impact of the Covid-19 pandemic.
The loan, drawn under the Rapid Credit Facility (RCF), aims to enhance liquidity and provide 'much-needed resources' for fiscal interventions to protect public health.
IMF Deputy Managing Director Tao Zhang noted that the pandemic had heavily reduced Kenya's growth and created fiscal and external financing needs.
According to Zhang, the loan will allow Kenya to maintain an adequate level of international reserves and provide the budget financing needed to respond to the pandemic.
Treasury CS Ukur Yattani welcomed the approval, saying it would help the National Treasury address gaps in Kenya's budget implementation.
The IMF also advised the government to resume fiscal consolidation plans once the crisis lessens to reduce 'macroeconomic vulnerabilities'.
Kenya's special drawing rights (SDR) at the IMF were recently doubled to Sh75 billion from an equivalent of Sh37 billion.
