The International Monetary Fund, or IMF, announced on Tuesday that its board had approved the release of $447.39 million to Kenya.
The fund said in a statement that Kenya’s public debt had “levelled out” as a result of efforts towards fiscal consolidation, and it added that it had provided additional funding through an existing facility.
The IMF and the East African nation reached a 38-month funding agreement in April of last year through its extended fund facility and extended credit facility. With the most recent payment, the total now stands at $1.65 billion.
The IMF estimates that Kenya would now get $2.416 billion overall from the current accord. Both sides reached an agreement on the increase last month to pay for external financing costs “due to the drought and challenging global financial conditions”.
To decrease the strain that debt servicing has on revenue, President William Ruto, who took office in September, plans to abolish pricey commercial borrowing in favour of more affordable sources like the World Bank.
According to Finance Minister Ken Ofori-Atta, this follows the IMF’s announcement that it would deliver $3 billion to Ghana by the first quarter of 2023.
The Minister asserts that the structural changes, significant budgetary measures, and medium-term macroeconomic framework all adhere to the IMF-supported Program.
Ghana has a staff-level agreement on economic policies and reforms that will be backed by a three-year arrangement under the Extended Credit Facility.
