IMF agrees to $235.6M disbursement to Kenya; greenlights $1 bn loan to Tanzania

The Executive Board of the International Monetary Fund (IMF) completed Monday the third reviews under the 38-month arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. The Board’s decided to allow an immediate disbursement of SDR 179.13 million (about US$235.6 million), usable for budget support. Which brings Kenya’s total disbursements for budget support to about US$1,208.2 million.

"Kenya’s EFF/ECF arrangements for a total of SDR 1.655 billion aim to support Kenya’s program to address debt vulnerabilities, the authorities’ response to the COVID-19 pandemic and global shocks resulting from the war in Ukraine, as well as to improve governance and support broader economic reforms", the international body said.

IMF Board also approved a SDR 795.58 million (about US$1,046.4 million) ECF arrangement for Tanzania, with about US $151.7 million to be disbursed immediately.

In a statement, the IMF said that the  40-month financing package would assist Tanzania's economic recovery, address the spillovers from Russia-Ukraine conflict, help preserve macroeconomic stability, and support structural reforms toward sustainable and inclusive growth.