WASHINGTON, The International Monetary Fund approved a disbursement of $258.1 million for Kenya after completing a second review under a 38-month program to address debt vulnerabilities, the Covid-19 response and enhancing governance.

The delivery of IMF funds brings total disbursements to $972.6 million out of a total $2.34 billion available under the country’s program approved in April, the IMF said in a statement.

Kenyan authorities have kept up a strong commitment to their reform agenda in a challenging environment and are acting to cut debt vulnerabilities while supporting the economic recovery, the IMF said. Officials have maintained careful control of government spending to limit the deficit and are taking steps to reform state-owned enterprises to limit pressure on the budget while protecting social programs, the fund said.

The fund estimated that Kenya’s economy will grow 5.9% this year. The nation’s Covid-19 vaccination program has picked up speed, though uncertainty and pandemic-related pressures will persist until vaccinations become widely available, and the political calendar is a source of uncertainty, the IMF said.

“Kenya’s medium-term prospects remain positive, and the authorities’ continued commitment to their economic program is essential to maintain macroeconomic balance, while ensuring a more sustainable, greener, and inclusive growth,” IMF Deputy Managing Director Antoinette Sayeh said.

The board also completed Kenya’s Article IV consultation.

Kenya’s economy will probably expand by 5.8% in 2022 and 5.5% in 2023 after it contracted 0.3% last year, the IMF said.

Source: Nam News Network