Kenya is set to receive a significant loan disbursement from the International Monetary Fund (IMF) by the end of the year, combining the delayed seventh and eighth reviews of its cash support program. The disbursements could total KSh126 billion ($976 million), providing much-needed financial support as the current program is set to expire in April next year.
Central Bank of Kenya Governor Kamau Thugge confirmed that discussions with the IMF are in the final stages, focusing on a new fiscal framework aimed at improving revenue mobilization and reducing public debt growth. The IMF had delayed the disbursements following President William Ruto’s decision to scrap proposed tax increases and introduce spending cuts in response to protests.
The agreed fiscal framework limits the fiscal deficit to 4.3% of GDP, paving the way for the IMF disbursements before the end of December. The IMF has been a vital source of funding for Kenya, providing concessional loans in recent years. The country’s economic recovery and stability are now closely tied to the successful conclusion of these talks with the IMF.
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