Kenya has unlocked Ksh.15.5 billion ($127.4 million) in additional financing from the International Monetary Fund (IMF).
This follows successful discussions to amend the country’s ongoing program with the multi-lateral lender to provide additional financing.
In a statement Tuesday night, the IMF says the extra financing which is equivalent to $162.84 million worth of special drawing rights (SDRs) covers external financing needs resulting from drought and challenging global financing needs. $1=Ksh.121.67
The additional financing is expected to trickle in as part of the ksh 52.4 billion fourth tranche loan from Kenya’s 38-month program which currently awaits the approval of the IMF Executive Board.
Kenya had access to up to Ksh.27.2 billion in beyond its Ksh.284.6 billion ($2.34 billion) current loan arrangement with the IMF (EFF/ECF) which expires in June 2024.
By accessing the entire sum of Ksh.27.2 billion, Kenya will have exhausted its IMF special drawing rights quota which is capped at 435 per cent.
“Kenya’s total combined access would reach 405 per cent of quota when the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF) is fully disbursed. Thus, if Kenya faces additional financing needs, the authorities could request an augmentation of the program for an additional 30 per cent of quota,” the IMF had told Citizen Digital in earlier responses.
At current exchange rates, this means that Kenya can still draw a further Ksh.11.7 billion before fully exhausting its limit at the IMF.
Kenya has been chasing down additional financing from concessional sources such as the IMF and the World Bank after being virtually locked out of the international capital markets by inhibitive high-interest rates.