The International Monetary Fund has approved $1.5 billion in precautionary funding for Kenya, for a period of 2 years.
This comes after conclusion of talks between government officials and the IMF on replacing a similar standby credit facility whose tenure ended early this year.
Kenya's recent growth performance remains robust and the outlook is positive
The funds comprise a standby arrangement worth about $990 million and a standby credit facility worth about $495 million.
“Kenya’s recent growth performance remains robust and the outlook is positive,” IMF Deputy Managing Director Min Zhu said in the statement
The international lender further added that Kenya can only tap into the funds in case of an emergency and is also expected to form a basis for policy to reform institutions and macroeconomic systems.
Kenya’s government has indicated that it does not intend to withdraw from the funds unless the country is faced with an actual balance of payment needs.
The loan is one of the biggest IMF has granted on the continent as part of a renewed push to help fragile economies.