Kenya anticipates receiving additional funds from the International Monetary Fund by the year’s end and is currently engaged in discussions with the Fund regarding the potential consolidation of the seventh and eighth reviews of its support program, as stated by the governor of the central bank on Wednesday.
Earlier in June, the East African nation and the IMF reached a staff-level agreement concerning the seventh review of its $3.6 billion program.
However, this review has not yet received approval from the Fund’s executive board, following the government’s decision to abandon proposed tax increases and implement spending reductions in late June due to widespread protests that escalated into violence.
“We are in the final stages of an agreement (with the IMF). The fiscal framework has been agreed,” Governor Kamau Thugge told a news conference, a day after the Central Bank of Kenya cut its benchmark lending rate by another 75 basis points.
Kenya’s government has rasked the International Monetary Fund (IMF) to carry out a formal evaluation of corruption and governance matters. Although this assessment is not directly associated with the forthcoming disbursement, it represents an effort to foster goodwill with the Fund as the government seeks to stabilize its financial situation.
