IMF clears $407 mn in immediate aid to Kenya

Authorities at the IMF approved $407 million in immediate disbursements to Kenya for budget support following a review by the executive board, the agency said Wednesday.

The funds are part of a $2.34 billion package approved in April to be disbursed over 38 months, under the Extended Credit Facility and the Extended Fund Facility.

The IMF previously disbursed Kenya $307.5 million under the program.

“Kenya is staging an economic recovery despite a recent third wave of Covid-19 infections,” the Washington-based crisis lender said in a press release.

“Growth is now estimated to pick up to 6.3 percent in 2021,” the agency said. “However, uncertainty and pandemic-related pressures will persist until vaccinations become widely available.”

The IMF statement praised Kenya for progress on structural reforms and anti-corruption initiatives, adding that transparency has been enhanced by the publication of audits of Covid-19-related expenditures.