The Board of the International Monetary Fund (IMF) on April 2 2021 approved a US $ 2.34 billion Extended Fund Facility (EFF)/ Extended Credit Facility (ECF) arrangement program for Kenya. The program is to support resurgence of growth in the Kenyan economy after COVID-19 related shock and reduce debt vulnerabilities through a multi year fiscal consolidation pegged on raising revenues while controlling expenditure. The program however, is designed to safeguard resources to vulnerable groups and address weaknesses in State Owned Enterprises.
The program successfully went through the first review which took place virtually from April 29, 2021 to May 14, 2021. The success of the first review signals the confidence the IMF has on Kenyan economic policies and the reforms that we have set out in the program. The review confirmed that the primary balance target for end March 2021 was met by a comfortable margin. In addition, the program performance criteria on debt guarantees and Central Bank of Kenya’s net international reserves were also met.
For more information, you can get the see the Cabinet Secretary’s press release of June 23, 2021 and the IMF report of the first review as well as other relevant information in the links below;
Cabinet Secretary’s Press Statement of June 23, 2021
content/uploads/2021/06/Press- Statement-23rd-June-2021- Kenyas-Progress-on-IMF- Supported-Reforms.pdf
First Review Report of the ECF/EFF Program
Publications/CR/Issues/2021/ 06/25/Kenya-First-Reviews-of- the-Extended-Arrangement- Under-the-Extended-Fund- Facility-and-an-461274
Board Approval Press release