IMF to wire Kenya Ksh.29.5 billion next month

The International Monetary Fund (IMF) is expected to wire Kenya Ksh.29.49 billion ($264 million) this December.

This is expected to be the third disbursement of its ongoing Ksh.261.4 ($2.34 billion)- 38-month long program framed earlier this year.

Last week, the IMF reached a staff-level agreement following the conclusion of a virtual mission to Kenya which began on October 12.

The fresh disbursement now awaits the approval of IMF’s Executive Board which sits in Washington D.C.

“The authorities have remained firmly committed to their economic program in this complex environment. They outperformed on their fiscal target for the 2020-21 financial year. The solid recovery of tax revenue thus far in FY 21-22 is providing essential resources to sustain critical programs and reduce borrowing needs,” noted Mary Goodman, an IMF staff lead in a statement sent out Friday night.

On its part, Treasury has assured it remains on the path to implementing key reforms which are rubberstamped on the IMF loan program.

For instance, the National Treasury says Kenya has successfully completed the financial evaluation of Kenya Airways- a key pillar of the program.

Other reforms which have set sail since the nailing of the program include the audit of Kenya Power operations which has been set forth in recommendations by a Presidential appointed taskforce.

“The government will continue on its fiscal consolidation plan by containing the growth in expenditures and maintaining a reasonable revenue raising effort so as to reduce debt related vulnerabilities. Additionally, we will sustain ring-fencing of priority social spending and supporting those affected by the ongoing droughts in parts of the country, so as to ensure that the most vulnerable are cushioned at all times,” noted the Planning Ministry.

The new credit line is expected to raise disbursements under the program to Ksh.110 billion ($984 million) by the end of the year.