Kenya awaits IMF Loan to Help Reboot the Economy
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- March 31, 2021
Kenya is expected to recieve about KShs 34.4 billion from the International Monetary Fund (IMF) next week.
During the Monetary Policy Committee conference on Tuesday, Central Bank of Kenya (CBK) Governor Patrick Njoroge said they are expecting IMF approval on Friday for the loan.
The IMF loan is to help reboot the economic growth of the country during this COVID-19 pandemic. We can approve that so many people have lost their jobs, which has brought real hardship, with the enforced curfews and restrictions to prevent the spread of COVID-19.
In May 2020 Kenya received $739 million from the IMF, this was to help the country to fight COVID-19, during the early phase.
The KShs 34.4 billion, is to help reboot the economic growth, and improve health facilities during the third phase of COVID-19.
The loan represents the first batch of a $2.4 billion 38-month program with the Bretton Woods institution.
“The program will support the next phase of the country’s COVID-19 response and the authorities’ plans for a strong multi-year effort to stabilize and begin reducing debt levels relative to GDP, laying the ground for durable and inclusive growth over the years to come,” said Mary Goodman, an IMF staffer who lead the mission to Kenya last month.
During the 14th presidential address on COVID-19, President Uhuru Kenyatta stated the the economy which was to grow by 6.2% in 2020, grew only by 0.6% due to COVID-19 pandemic.
With the KShs 34.4 billion Kenya’s economy is expected to at least increase in 2021.
“The bottom line is that the program will support our COVID-19 response and budget support. It anchors fiscal consolidation through revenue driven policies which minimize debt vulnerabilities. This is the key element of the program,” added Dr. Njoroge.
The change in economic growth has brought high cost of living with majority of Kenyans not meeting their basic needs.
