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After an unusually long wait, Kenya has secured a staff-level agreement with the International Monetary Fund (IMF), unlocking the disbursement of USD 976 million (approximately Ksh.126.2 billion).
This agreement is part of the broader policies and reforms necessary to complete the reviews of Kenya’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. The newly approved financing will enable Kenya to meet its maturing foreign debt obligations without depleting its currency reserves.
As part of the conditions for this disbursement, the IMF has urged Kenya to implement corrective measures to ensure debt sustainability. Additionally, the international lender has called for fiscal adjustments in the 2024/2025 budget to enhance revenue-raising efforts.
National Treasury Cabinet Secretary Prof. Njuguna Ndung’u is scheduled to present this year’s budget to Parliament on Thursday, addressing these fiscal adjustments.
This latest review marks the seventh under the program that Kenya and the IMF initiated in April 2021. Overall, the program aims to establish a tighter fiscal stance, reducing the country’s debt vulnerabilities and promoting economic stability.
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