IMF staff and the Kenyan authorities have reached a staff-level agreement on economic policies to conclude the third reviews of the 38-month EFF/ECF financed program. Kenya would have access to about US$244 million in financing once the review is formally completed by the IMF Executive Board. The economic rebound is underway although global shocks are presenting new challenges in the form of rising global energy, fertilizer, and food prices, which will pressure inflation and create new spending needs. Kenya’s robust program performance is delivering resilience that is helping the country navigate these global shocks while remaining within the authorities’ targets and continuing to make progress in addressing debt vulnerabilities.
A staff team from the International Monetary Fund (IMF) led by Mary Goodman, conducted a hybrid mission to Kenya and in Washington DC from March 31 – April 22 to discuss progress on reforms and the authorities’ policy priorities in the context of the third review of Kenya’s economic program supported by the IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF). The arrangements were approved by the IMF Executive Board on April 2, 2021 , for a total amount of SDR 1.655 billion (US$ 2.34 billion at that time).
At the conclusion of the mission, Ms. Goodman issued the following statement:
“The IMF staff team and the Kenyan authorities have reached a staff-level agreement on the third review of Kenya’s economic program under the EFF and ECF arrangements. The agreement is subject to approval of IMF management and the Executive Board in the coming weeks. Upon completion of the Executive Board review, Kenya would have access to SDR 179.13 million (equivalent to about US$ 244 million), bringing the total IMF financial support under these arrangements to SDR 865.77 million (equivalent to about US$ 1,178 million).
“The Kenyan economy has been staging a robust recovery as the effects of the pandemic wane, and the authorities remain vigilant. Spillovers from the war in Ukraine are expected to have a modest impact on growth in the near term, as Kenya’s direct exposure to Russia and Ukraine is relatively limited. Staff projects growth at 5.7 percent in 2022, reflecting a pickup in agriculture and continued recovery in services and other sectors. By mid-April 2022, 30 percent of adults had been fully vaccinated against COVID-19, up from 5 percent at end-2021. The medium-term outlook remains favorable, supported by Kenya’s proactive reform efforts, although […]