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 multiyear 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 fourth review on the program was successfully undertaken from 25th October to 8th November, 2022 and approved by the IMF Executive Board on 19th December, 2022.
Upon Approval, Kenya received a disbursement of about US$ 447.39 million including an argumentation of access of about US$. 215.81 million. This brings Kenya’s cumulative disbursement under the program to US$. 1,655.59 million. With the Augmentation, the total amount under the ECF/EFF arrangements rises to US$.2.416 billion. The good program performance demonstrates Kenyas commitment to the program and affirms 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 tax revenue and primary balance Quantitative Performance Criteria (QPC) for end June, 2022 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 see the Cabinet Secretary’s press release of 9th November, 2022 and the IMF staff press release of December, 2022 as well as other relevant information in the links below;
IMF Fourth Review report and Press releases
IMF Staff press release after third review
Cabinet Secretary’s Press Statement of June 23, 2021
First Review Report of the ECF/EFF Program
Board Approval Press release