IMF approves $2.34 bln in new financing arrangements for Kenya

The International Monetary Fund on Friday said its board had approved new three-year financing arrangements for Kenya valued at $2.34 billion to help the African country continue responding to the COVID-19 pandemic and address its debt vulnerabilities. Approval of the new loans under the Fund's Extended Credit Facility and Extended Fund Facility will enable immediate disbursement of about $307.5 million that Kenya can use for budget support, adding to $739 million it received in emergency COVID-19 aid in May 2020, the Fund said in a statement.

The IMF said Kenya's debt remained sustainable, but it was at high risk of debt distress, and authorities should focus their near-term agenda on urgent structural policy challenges.