Kenya Seeks New Financing From IMF

Kenya is seeking yet another financing from the International Monetary Fund as the International lender is embarking on its mission in the country this week. 

Kenya seeks to foster economic resilience and solve balance of payment issues through IMF Resilience and Sustainability Facility. IMF managing director, Kristalina Georgieva, said that they have an ongoing programme with Kenya that will see the institution deliver a new long-term concessional financing instrument.

“We have a very strong programme with Kenya that we are financing now. We intend to expand by deploying a new long-term concessional financing instrument. We have created the Resilience and Sustainability Trust and there will be a team here on the week starting May 7th to work on that”, said Kristalina. 

The new financing from IMF will see Kenya receive  Sh150.1 billion based on the country's quota. The funding has a 20-year repayment period and a 10.5 grace period before the principal payment is made. Kenya is eligible to utilize the facility since the country has a concurrent IMF-supported programme.

IMF managing director said that her meeting last week with President William Ruto and Cabinet secretaries delved into Kenya's inability to access global financial markets. She further blamed the tight financial conditions on Covid-19 and the war in Ukraine.