This archive report was first published on 11 May 2020.
On May 11, 2020, the International Monetary Fund (IMF) extended $1.2 billion in emergency funding to Kenya and Uganda to help them respond to the devastating effects of the coronavirus pandemic.
The funding, disbursed under the Rapid Credit Facility, will provide Kenya with $739 million to address its urgent balance of payments needs, which have been exacerbated by the pandemic. Uganda will receive $491.5 million to finance health, social protection, and macroeconomic stabilization measures, as well as address balance of payments and fiscal needs.
"The Covid-19 pandemic has delivered a large economic shock to Kenya, impacting nearly all facets of the economy and leading to urgent balance of payments and fiscal financing needs," said Tao Zhang, IMF deputy managing director.
The IMF's emergency funding will provide liquidity support to help Kenya cover its balance of payments gap and provide resources for fiscal interventions to safeguard public health and support households and firms affected by the crisis.
Kenya has witnessed a significant surge in Covid-19 cases, with 582 confirmed cases and 26 deaths as of Wednesday. Uganda has reported 100 positive cases, with 55 recoveries.
The pandemic has had a severe impact on key sectors of the economy in both countries, including trade, tourism, transport, construction, manufacturing, and agriculture. It has also curtailed remittances and foreign direct investments, weakened economic conditions, and exerted significant pressure on revenue collection, expenditure, reserves, and the exchange rate.
