The International Monetary Fund (IMF) authorized a Ksh55 billion ($447.39 million) loan to Kenya in a statement dated Monday, December 19.
This was the fourth payment made under the terms of the Ksh255 billion loan that Uhuru Kenyatta, a retired president, and the IMF agreed upon in April 2021.
The purpose of Kenya's 38-month loan was to strengthen the country's economy, particularly in the period before the pandemic.
According to Antoinette Sayeh, the Deputy Managing Director of the IMF, "Kenya's commitment to its economic program supported by the Fund's Extended Fund Facility and the Extended Credit Facility arrangements is anchoring debt sustainability."
She observed that despite the slowing global economy, more stringent lending requirements, and unstable commodity prices, the nation's economy performed well.
In addition, she came to the conclusion that protecting promising medium-term prospects required careful macroeconomic policies and steadfast structural reform implementation.
President William Ruto's decision to discontinue fuel subsidies was also praised by the IMF, as were his plans to considerably reprioritize spending in order to keep the fiscal deficit below the planned amount.
In order to lessen debt risks in the future, the IMF said, "continued strong commitment to fiscal consolidation over the medium term remains crucial."
The IMF set strict requirements when it authorized the loan, which Kenya had to adhere to or suffer the repercussions.
In order to fight corruption, Kenya, for instance, was anticipated to introduce a wealth declaration policy for all public employees.
Kenya was also anticipated to demand that all firms disclose accurate, comprehensive, and current beneficial ownership information to the Registrar of Companies.
A section of the April 2021 statement reads, "These reforms must be implemented in chosen parastatals to bring them back to profitability or increase their efficiency."
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