Kenya-IMF Program

KENYA-IMF PROGRAM

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) arrangements program for Kenya. The program was designed 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 with safeguards to cushion vulnerable groups and address weaknesses in State Owned Enterprises. The program was extended in July 2023 to include a 20-month Resilience and Sustainability Facility (RSF) arrangement.

The program has successfully gone through six reviews, the latest being the sixth review of the EFF/ECF and the first review under the RSF which were approved by the IMF Executive Board on 17^th January, 2024. Currently, the discussions on the seventh review have been concluded and Kenya and IMF reached Staff-Level Agreement on Seventh Review of the ECF/EFF Arrangements and the Second Review Under the RSF.

Executive Board is expected to meet later in August 2024 to consider the Seventh Review Following the withdrawal of the Finance Bill 2024, the fiscal targets for FY 2024/25 under the program have been recalibrated: Fiscal deficit for FY 2024/25 under the program will be 4.4 percent of GDP with a primary surplus of 1.4% of GDP.

Upon the successful completion of the seventh review, Kenya will access SDR 457.96 million (about US$ 607.2 million), which includes SDR 367.49 million (about US$ 487.2 million) for EFF/ECF facility arrangements This will bring the total IMF financial commitment during the duration of the EFF/ECF program to SDR2.71 billion (about US$3.60 billion). In addition, the completion of the second Review under the Resilience and Sustainability Facility (RSF), approved on July 17, 2023, would unlock SDR90.46 million (about US$120 million).

The detailed Program documents for the Seventh Review, will be uploaded onto the National Treasury website immediately the IMF Board approves the seventh review.

The Program documents for Sixth and previous reviews and other communications and other relevant information can be accessed through the links provided below:

 

IMF Staff press release after seventh review of the EFF/ECF and Second review under the RSF

https://www.imf.org/en/News/Articles/2024/06/10/pr-24213-kenya-agreement-on-7th-reviews-of-eff-and-ecf-arrangements-and-2nd-review-under-rsf

Cabinet Secretary Press Release

https://twitter.com/KeTreasury/status/1747976595376165204

IMF Sixth Review and press release

https://www.imf.org/en/Publications/CR/Issues/2024/01/17/Kenya-2023-Article-IV-Consultation-Sixth-Reviews-Under-the-Extended-Fund-Facility-and-543889

IMF fifth Review and Press releases

https://www.imf.org/en/Publications/CR/Issues/2023/07/19/Kenya-Fifth-Reviews-Under-the-Extended-Fund-Facility-and-Extended-Credit-Facility-536772

IMF Fourth Review report and Press releases

https://www.imf.org/-/media/Files/Publications/CR/2022/English/1KENEA2022003.ashx

IMF Staff press release after third review
https://www.imf.org/en/News/Articles/2022/04/25/pr22132-imf-reaches-staff-level-agreement-on-third-review-of-fund-and-credit-facility-for-kenya

Cabinet Secretary’s Press Statement of June 23, 2021

https://www.treasury.go.ke/wp-content/uploads/2021/06/Press-Statement-23rd-June-2021-Kenyas-Progress-on-IMF-Supported-Reforms.pdf

First Review Report of the ECF/EFF Program

https://www.imf.org/en/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

https://www.imf.org/en/News/Articles/2021/04/02/pr2198-kenya-imf-executive-board-approves-us-billion-ecf-and-eff-arrangements

Program document

https://www.imf.org/en/Publications/CR/Issues/2021/04/06/Kenya-Requests-for-an-Extended-Arrangement-Under-the-Extended-Fund-Facility-and-an-50339