IMF approves Sh109.8 billion new funding to KenyaÂ

Worldwide Financial Fund headquarters constructing in Washington, DC.

The Worldwide Financial Fund (IMF) Government Board has authorised the disbursement of Sh109.8billion ($684.7 million) to Kenya.

The approval made on Wednesday follows the completion of the sixth evaluate of Kenya’s multi-year association with the fund below the Prolonged Fund Facility (EFF) and Prolonged Fund Facility (ECF) and the primary evaluate of the Resilience and Sustainability Facility (RSF).

Whereas making the approval, the IMF board noticed that the Kenyan financial system has remained resilient towards a difficult exterior and home backdrop which embrace a multi-season drought.

“Kenya’s development remained resilient within the face of accelerating exterior and home challenges. The EFF/ECF and RSF preparations proceed to help authority efforts to maintain macroeconomic stability, strengthen coverage frameworks, stand up to exterior shocks, push ahead key reforms, and promote extra inclusive and inexperienced development,” IMF Deputy Managing Director Antoinette Sayeh acknowledged.

Depreciation-induced inflation

The IMF expects the financial system to stay resilient with GDP development having accelerated by way of the primary three quarters of 2024 from a robust rebound within the agriculture sector.

The fund has projected development in 2024 at 5 p.c whereas noting ongoing changes in fiscal coverage and exterior accounts.

Inflation is, nonetheless, anticipated to edge up within the first half of the 12 months to June from international oil value volatility and from native foreign money depreciation-induced inflation.

The brand new funding from the IMF brings whole disbursements below the EFF/ECF program to Sh994.6 billion ($2.6 billion). The multi-year IMF program runs as much as April 2025.