spot_img

IMF Reaches Agreement with Kenya, Paving Way for $976 Million Disbursement

Date:

NAIROBI, Kenya – Kenya has reached a staff-level agreement with the International Monetary Fund (IMF), setting the stage for a substantial $976 million disbursement.

    The IMF announced that if its Executive Board approves the second review of Kenya’s Resilience and Sustainability Facility, the country will gain immediate access to $120 million.

    The IMF has called on Kenya to adjust its 2024/25 budget to incorporate more revenue-raising measures.

    This recommendation comes in response to a deteriorating primary fiscal balance and a shortfall in tax collections, which are anticipated to keep domestic borrowing requirements high.

    Despite facing liquidity challenges since 2022, Kenya successfully sold a new $1.5 billion Eurobond in February.

    This strategic move, albeit costly, allowed the country to buy back another Eurobond maturing in June, easing investor concerns about a potential default and strengthening the shilling against the dollar.

    The IMF noted that fiscal adjustments for 2024/25 could significantly improve Kenya’s economic outlook.

    In response, Kenyan authorities have proposed several measures in the draft 2024/25 Budget and the 2024 Finance Bill aimed at fiscal consolidation.

    The finance minister is scheduled to present the 2024/25 (July-June) budget to parliament on Thursday.

    The overall spending is set at 4 trillion shillings ($31 billion), an increase from the initially presented 3.75 trillion shillings for the 2023/24 year, which was later revised to 3.85 trillion shillings.

    Anthony Kinyua
    Anthony Kinyua
    Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Share post:

    Subscribe

    spot_imgspot_img

    Trending

    More like this
    Related

    News Corp Sells Foxtel to DAZN in $2.1 Billion Deal

    NEW YORK CITY, US - Rupert Murdoch's News Corp...

    Teenage Girl Dies After Fight with Cousin in Narok

    NAROK, Kenya - A 16-year-old girl from Narok Central...

    AIC Bishops Defend Politicians’ Role in Funding Churches: “They Also Serve God”

    ELDORET, Kenya - Clerics from Uasin Gishu County, the...

    Eight Police Officers Injured in Suspected Al-Shabaab Attack in Wajir

    WAJIR, Kenya - At least eight police officers sustained...