Kenya is set to receive Ksh244.15 billion from the International Monetary Fund (IMF) following successful negotiations according to the Central Bank of Kenya (CBK) Governor Kamau Thugge.
According to the CBK governor, the disbursement is expected before the end of December 2024, following an agreement with the National Treasury.
Thuge has highlighted that intensive discussions with the IMF have led to significant progress, including combining the 7th and 8th reviews of Kenya’s financial performance.
“About the seventh review, the remaining hurdles to clear. The discussions with the IMF are to combine the 7th review and the 8th review. We have made a lot of progress, and we are in the final agreement.
The fiscal framework has been agreed. A fiscal deficit of 4.3 percent of GDP has been agreed between the treasury and the IMF,” said Thugge.
Also Read: IMF Bosses Ask Kenya to Request a Corruption & Governance Review
CBK on Other Discussions Reached With the IMF
Moreover, under the IMF’s Extended Credit Facility, the national treasury held discussions around Kenya’s reserve-building efforts, which project an increase of $1.9 billion.
“Our projections for the reserve builder is $1.9 Billion has assumed disbursement from the IMF before the end of December.
“So, I would say that discussions are going well, and disbursements will be made before the end of the calendar year,” the CBK governor added.
Thugge has expressed optimism about the IMF’s confidence in Kenya’s fiscal policies and economic outlook, noting that Kenya’s real GDP growth is expected to surpass both global and developing economies’ average growth rates in the coming years.
The upcoming disbursement from the IMF is part of a broader financial package aimed at stabilizing Kenya’s economy, reducing the fiscal deficit, and supporting sustainable development.
With the IMF’s support, Kenya is set to enhance its economic resilience, improve public financial management, and achieve its long-term growth.
Also Read: Govt Close to Agreeing New Ksh192.7 Billion Loan After IMF Delays
IMF Bosses Send Message to Kenya
Earlier, Kenya agreed to an in-depth IMF assessment of corruption and governance following a proposal by key shareholders at the fund.
According to the IMF bosses, the move will address concerns that could impact the country’s economic stability.
Also, the anonymous shareholders who spoke to Reuters, explained that this will also allow Kenya to unlock lending that has been stalled by the contentious tax hikes.
IMF indicated that the disbursement of around $600 million (Ksh77.1 billion) under a plan that expires in 2025 had been held up since the government withdrew the Finance Bill in 2024 in June.
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