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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