The International Monetary Fund, IMF, announced that its executive board had authorised a payout of $235.6 million to Kenya.
Following a third assessment of the country’s Extended Credit Facility and Extended Fund Facility agreements, the permission was given.
The installment, according to the IMF, is useful for budget support and brings such payouts under the 38-month agreements, which were valued at $2.34 billion when they were approved in April 2021, to $1.208 billion.
The IMF predicted that Kenya‘s inflation rate, which reached 7.5 percent in June, would peak this year and then gradually decline to the Central Bank of Kenya’s objective of 2.5 percent by the beginning of 2023.
“Kenya’s economy has rebounded strongly in a challenging environment and is projected to grow 5.7% in 2022.
“Downside risks predominate in the near-term. Uncertainties stem from the war in Ukraine, continuing drought in the semi-arid regions, unsettled global financial market conditions and the political calendar,
“But Kenya’s medium-term outlook remains favorable,” the IMF said.
According to the commission, Kenya’s tax collection efforts during the fiscal year 2021/22 were “very strong,” leaving the country with enough financial breathing room to temporarily offset some of the higher fuel and food prices that have affected households while still meeting the program’s financial goals.
“The approved fiscal year 2022/23 budget broadens tax collection and maintains careful expenditure control while protecting social spending,” the IMF added.