IMF lend Kenya Sh 257 billion loan repayable in 38 months

International Monetary Fund (IMF)  photo

 

The International Monetary Fund (IMF) approves a Sh 257 billion loan for Kenya with conditions as the Washington based lender returns to be at the centre of Kenya's economic plan.



The loan would help Kenya to deal with the pandemic related funding, fund fundamental reforms like BBI as well as address the urgent need to reduce Kenya's debt vulnerabilities.


In a statement on Friday, the IMF said its executive board had passed the 38-month financing plan under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).


The ECF grants financial support to countries with questionable balance of payments. It was created under the Poverty Reduction and Growth Trust (PRGT) as part of a wider improvement to make IMF's financial support more adaptable and better tailor-made to the various needs of low-income countries, including in times of crisis.


EFF is stretched to a country that is facing serious medium-term balance of payments difficulties because of structural inclinations that require time to address.


Loans under an outspread form have a longer repayment period and are mainly used to help countries achieve medium-term structural reforms.


"The three-year financing package will help the next phase of the authorities' COVID-19 response and their plan to decrease debt vulnerabilities while safeguarding resources to protect vulnerable groups," IMF said in a statement.

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