The International Monetary Fund (IMF) announced on Tuesday that it has reached an agreement with Kenya, which will allow the disbursement of a new tranche of aid amounting to 433 million dollars, subject to the validation of the agreement by the Board of Directors. administration of the Fund.
A mission which stayed in Nairobi, led by Mary Goodman and Tobias Rasmussen, estimated that “progress has been made in terms of fiscal adjustment in order to reduce the risks linked to the debt, even if the pressure remains high”.
According to her, “the authorities are taking strong measures to continue reducing the budget deficit (…) The government is about to propose a new budget which will incorporate new spending cuts”, without however stopping certain more targeted aid, in particular for regions affected by drought.
The Kenyan economy has shown great resilience in a difficult environment that the country is going through, marked by rising inflation, a drop in activity in the agricultural sector or even drought, considered the mission of the IMF.
The new tranche of aid is part of a financing program already underway. The financial institution had, in fact, approved in April 2021 an aid program worth $2.34 billion over 38 months, within the framework of the extended credit facility (ECF) mechanism and the credit facility. Expanded Funding (EFF).
This agreement, coming at the end of Kenya’s fourth review of commitments, will bring the total amount of disbursements under this program to $1.55 billion.
By OMA Newsletter N° 932 of 09/11/2022
Article published under the direction of Dr. Najib Kettani
The OMA, NGO with an Intercontinental vocation
For the development of cultural exchanges
Valuing human potential
The promotion and consolidation of Africa’s development, and
Inter-African integration
