The Global Heroes


18th January 2024 By The Global Heroes Aid and Policy

 The International Monetary Fund (IMF) has approved a new loan exceeding $941 million to aid financially beleaguered Kenya. The East African nation is currently contending with a myriad of economic challenges, including a substantial debt burden, a cost of living crisis, and a depreciating currency.

 In a statement released on Wednesday, the IMF disclosed that its executive board greenlit the $941.2 million loan, with an immediate disbursement of $624.5 million. The total payments across various credit facilities now reach approximately $2.6 billion. Despite facing external and domestic challenges, Kenya's economic growth is projected to remain resilient, with the IMF forecasting around five percent growth in the current year, a slight decrease from the estimated 5.1 percent in 2023.

 Antoinette Sayeh, IMF Deputy Managing Director and Acting Chair, emphasized the loan's role in supporting Kenya's efforts to maintain macroeconomic stability, reinforce policy frameworks, withstand external shocks, implement key reforms, and promote inclusive and sustainable growth.

 Kenya's public debt has surged to 10.585 trillion shillings ($65.5 billion), prompting a strategic shift in handling a $2 billion Eurobond maturing in June. Finance Minister Njuguna Ndung'u clarified that the country paid $68.7 million in interest on the bond, steering clear of potential default.

Despite facing economic challenges, Kenya remains committed to meeting all debt obligations with international lenders, as emphasized by President William Ruto. The IMF's financial injection provides a crucial lifeline for Kenya as it navigates economic uncertainties.

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