The International Monetary Fund (IMF) Executive Board is expected to postpone its approval to disburse a loan of Ksh.28.7 billion ($244 million) to Kenya.
While the country had hoped to receive the board’s approval to wire the funds, which are part of a three-year loan program, the IMF Executive Board’s calendar through the end of the month does not include discussions on the third-tranche disbursement with Kenya.
This means that the IMF Executive Board may only meet to support the April 25 staff-level agreement on the facility from July 1, which will be after the current fiscal year 2021/22 expires.
Delays in disbursement are expected to leave a marginal gap in financing the budget through June 30, even as the National Treasury works to secure a syndicated loan to plug an even larger budget gap.
In April, IMF staff and Kenyan authorities reached a staff-level agreement in economic reviews, marking the third formal assessment of the 38-month program, which will result in total disbursements to Kenya of Ksh.275 billion ($2.34 billion).
The IMF had disbursed an estimated Ksh.114.3 billion ($976.2 million) to Kenya through the program as of December of last year.
The new disbursements, which were expected before the end of the fiscal year, were expected to bring the program’s total proceeds to Ksh.141 billion ($1.2 billion).
