The International Monetary Fund said Tuesday it reached an agreement with Kenyan authorities following the country’s “peaceful completion of elections” which opens the door to the next installment of aid under an existing $2.3 billion loan program.
The African nation is among many to seek help after being hit by volatile global commodity prices, surging inflation and an international slowdown in growth, which piled pressure on policymakers, reports AFP.
An IMF mission to the country reached a staff-level agreement with the government, that if approved by the board of the Washington-based crisis lender will release $433 million in aid.
The financing is part of the 38-month package approved in April 2021.
The funds will help cover needs resulting from drought and challenging global financing conditions as well, the IMF said in a statement.
Kenya’s economy “has been resilient in the face of a challenging environment,” the IMF said.
While higher food and energy costs have pushed inflation up, “the peaceful completion of elections has lifted uncertainty and credit to the private sector is expanding,” the IMF said.
“The medium-term outlook remains favorable, supported by proactive reform efforts by the new government,” the IMF said.
The new administraion has expressed strong commitment to the program, but will need to continue the reform efforts, the fund said.