President William Ruto has secured Ksh150 billion credit facility days after calling out former President Uhuru Kenyatta over debts.
The loan was disbursed by the International Monetary Fund (IMF) following a review of the country’s economy by its experts.
In a statement, the IMF announced an immediate disbursement of Ksh99 billion to help the Kenya Kwanza administration in its economic recovery plans.
The disbursement under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) programs will also be topped by a release of $60.2 million (Ksh9.6 billion) under the Resilience and Sustainability Facility (RSF) arrangement.
While releasing the credit, IMF projected that inflation is expected to inch up in the first half of 2024, driven primarily by global oil price volatility and exchange rate passthrough.
However, the lender advised President Ruto’s administration to implement short-term measures to maintain the confidence build around economic recovery.
Further IMF directed the Kenya Kwanza administration to continue with the purge against graft for efficient government delivery.
“Kenya’s medium-term prospects are positive and could be buttressed by improving competitiveness, inclusivity, and enhancing governance and anti-corruption framework to support a vibrant and market-driven economy,” IMF stated.
The loan disbursement was made a few hours after Ruto castigated his predecessor Uhuru Kenyatta for taking a Ksh300 billion Eurobond in 2014 which must be paid in June 2024.
He remarked that this had thrown Kenya into a debt pitfall making it hard to invest in development projects.
