The International Monetary Fund (IMF) will give Kenya a $2.4 billion (Sh262.56 billion) loan to assist Kenya to cushion the economic impact of the coronavirus.
The IMF stated that the two have sealed a deal for the 38-month credit facility, with the disbursement beginning in the coming weeks.
In December 2020, Kenya has asked for a loan. This was after the $739 million (Sh79.3) billion received by Kenya in May to assist the country respond to the economic shocks that were a result of the pandemic.
This loan, extended to Kenya by the Brettonwoods organization will be spent on filling the budgetary deficits as Kenya seeks cash for development projects.
“I am pleased to announce that the Kenyan authorities and the IMF mission team have reached agreement on economic and structural policies that would underpin a 38-month program under the EFF and ECF arrangements for about US$2.4 billion,” Mary Goodman of IMF said.
“The staff-level agreement is subject to IMF management approval and Executive Board consideration, which is expected in the coming weeks.”
The Kenyan economy is currently marred by falling revenues and worsening debt service obligations.
The revenue that was collected in the first six months to December missed the target of Sh907.7 billion by Sh107.6 billion due to the Covid-19’s impact on business.
Kenya’s economy shrank by 5.7 percent in the second quarter of 2020.