The International Monetary Fund (IMF) on Monday signed off on a $688 million, one-year loan program for Kenya.
The loan is meant to support the government’s economic reforms and help it weather possible outside shocks.
[It] would mitigate the impact of shocks if they materialize
Kenya has said it does not intend to draw on the money, but rather have it on hand in case external shocks like weather, security concerns or market volatility lead the government to run into difficulty paying its bills, the IMF said.
“The new arrangements with the Fund provide a policy anchor for continued reforms, and would mitigate the impact of shocks if they materialize, supporting continued strong growth and poverty reduction,” IMF deputy managing