Kenya is poised to receive a much-anticipated R11 billion ($611 million) from the International Monetary Fund (IMF) on October 30, as confirmed by the Central Bank governor, Kamau Thugge, who is attending the annual Bretton Woods Institutions convention in Washington, D.C. The Kenyan government has met all the necessary targets set by the IMF in its loan program review.
In June, Kenya reached a staff-level agreement for the seventh review of its Extended Fund Facility and Extended Credit Facility arrangements. However, approval for the funds was delayed due to widespread protests against President William Ruto’s administration, leading to the withdrawal of the controversial Finance Bill for 2024.
The Kenyan government relies heavily on this IMF funding to address a significant budget shortfall of R63 billion for the current financial year. Recent discussions between the IMF and Kenyan authorities focused on ongoing economic challenges and the need for policies to complete the reviews of the loan program.
Despite public discontent over stringent loan conditions, which have led to a high tax regime, the Central Bank remains optimistic about the country’s economic prospects. Inflation is reportedly declining, and foreign exchange reserves have increased to R1.09 trillion ($8.6 billion), covering 4.3 months of imports. Thugge indicated that Kenya plans to request another financing program from the IMF after the current one concludes in April 2025.