The International Monetary Fund (IMF) has approved a significant loan package for Kenya, amounting to approximately Ksh 78.3 billion (USD $551.4 million). This funding comes as part of the IMF’s Resilience and Sustainability Facility (RSF), with aims to bolster Kenya’s economic stability and enhance its resilience to climate change. The loan approval follows a broader review under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF), where the IMF assessed Kenya’s fiscal health, particularly in light of external pressures and the impacts of prolonged drought.
The RSF program will support initiatives like sustainable development and climate resilience, including efforts toward carbon reduction and climate disaster preparedness. The IMF also extended Kenya’s EFF and ECF arrangements, allowing for longer-term reform implementation until April 2025. In tandem, Kenya’s Finance Act 2023, which focuses on economic consolidation, is expected to be critical in managing debt levels while maintaining essential social and development programs.
This loan is part of a larger financial strategy as Kenya grapples with external pressures, including a depreciating currency and rising inflation. The funds will specifically target initiatives that promote sustainable development and strengthen the country’s capacity to withstand climate-related challenges, especially after enduring the worst drought in decades
