Written By Lisa Murimi
The Kenyan government is on the brink of securing Ksh 77 billion ($600 million) from the International Monetary Fund (IMF), according to Central Bank of Kenya (CBK) Governor Kamau Thugge.
Speaking during the Monetary Policy Committee (MPC) meeting on October 9, Thugge confirmed that negotiations with the IMF were in the final stages, with the funds expected to be disbursed before the end of the year.
The loan will aid in addressing Kenya’s current account deficit by bolstering the country’s foreign exchange reserves to Ksh 254 billion.
Governor Thugge attributed the progress in talks to President William Ruto’s administration agreeing to IMF-recommended fiscal adjustments, thus paving the way for the disbursement.
“We are ready to combine the seventh and eighth reviews, and we have made significant progress. The fiscal framework and deficit have been agreed upon,” Thugge stated.
This development follows Kenya’s request for an IMF probe into corruption and governance issues, which are seen as hindering the country’s revenue collection.
The IMF spokesperson, Julie Kozack, welcomed the move, adding that the diagnostic review would help unlock a larger Ksh 474 billion ($3.6 billion) loan expected to be disbursed in phases, contingent on Kenya’s fiscal reforms.
