The International Monetary Fund has approved $739 million in emergency financing to cushion Kenya from economic shocks owing to the novel Coronavirus pandemic.
The IMF adds that it is in close contact with Kenyan authorities and stands ready to provide policy advice and further support as required.
Kenya has recorded 581 confirmed cases of the novel coronavirus with 26 deaths as at May 7, 2020. Sectors affected economically, include tourism, horticulture and manufacturing.
“The impact of COVID-19 on the Kenyan economy will be severe. It will act through both global and domestic channels, and downside risks remain large,” the IMF said in a statement.
To limit the spread of the Coronavirus, the country has suspended commercial flights and imposed a dusk-to-dawn curfew while banning public gatherings. It has also halted movement in and out of five regions most affected by the virus, including Nairobi, the capital city.
The IMF forecasts growth of 1.0% this year for Kenya.
“Emergency financing under the RCF (Rapid Credit Facility) will deliver liquidity support to help Kenya cover its balance of payments gap this year,” the IMF says.
