International Monetary Fund (IMF) on Friday approved a $2.34 billion aid package to Kenya to "address the urgent need to reduce debt vulnerabilities," the institution said in a statement.
The funds will be disbursed over 38 months, according to the Washington-based development lender, with a $307.5 million immediate disbursement "usable for budget support."
"Kenya was hit hard at the onset by the Covid-19 pandemic," the
International Monetary Fund said, highlighting the country's "forceful
policy response" that led to an economic recovery in 2021 after a slight
contraction in GDP in 2020.
But the crisis has also exacerbated "pre-existing fiscal vulnerabilities."
Antoinette Sayeh, IMF deputy managing director, called the aid "a strong signal of support and confidence" but noted it is "subject to notable risks, including from uncertainty about the path of the pandemic.