The International Monetary Fund's executive board has signed off on nearly $1 billion in new funding for Kenya.
The IMF said the board completed the fifth reviews under Kenya's Extended Fund Facility and Extended Credit Facility, allowing for an immediate disbursement of about $415.4 million, and extended those arrangements to 48 months from 38 to give Kenya more time to implement reforms.
It also approved a new 20-month arrangement under the IMF's Resilience and Sustainability worth about $551.4 million that will support Kenya's climate resilience efforts, according to a statement released on Monday.
Economic reforms
The IMF said Kenya had made good progress in implementing economic reforms despite facing the worst drought in decades, as well as a challenging external environment.
IMF Deputy Managing Directory Antoinette Sayeh said Monday's actions would allow Kenyan authorities to continue to address such challenges, sustain market confidence, promote growth and advance ongoing reforms.
She said approval of Kenya's fiscal 2023-2024 budget and the 2023 Finance Act were "crucial steps" needed to support ongoing consolidation efforts and reduce debt vulnerabilities while protecting social and development expenditures.
Tighter financing conditions also required a "prudent debt policy" and continued efforts to prioritize concessional loans, she said.
Burundi loan
The IMF board has also approved a $271 million Extended Credit Facility for Burundi, with an immediate disbursement of over $62 million.
The East African country's economy is just starting to recover from years of conflict and political upheaval under former leader Pierre Nkurunziza that left key sectors blighted.
The IMF said the loan facility will help address Burundi's protracted balance of payments needs, rebuild external buffers and support the government 's reform agenda.
