IMF approves new $941m loan for cash-strapped Kenya

Kenya is grappling with a host of economic challenges including a vast debt mountain, cost of living crisis and tumbling currency.

The IMF said in a statement published on Wednesday that its executive board had approved the $941.2 million loan, with an immediate disbursement of $624.5 million.

Total payments under various credit facilities amount to about $2.6 billion, it added.

The Washington-based agency said it forecast Kenya’s economic growth at around 5 percent this year, from an estimated 5.1 percent in 2023.

“Kenya’s growth remained resilient in the face of increasing external and domestic challenges,” said Antoinette Sayeh, IMF deputy managing director and acting chair, said in the statement.

According to the latest Treasury data released this month, Kenya’s public debt stands at 10.585 trillion shillings ($65.5 billion). Inflation has been running high, at 6.6 percent in December, and the IMF said it was likely to inch up in the first half of this year.

The Kenyan shilling is also trading at all-time lows at around 160 to the dollar.

Credit: rfi

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