June 24, 2024
IMF Orders Kenya To Curb Money Laundering To Unlock Ksh126.05 Billion Loan

IMF Orders Kenya To Curb Money Laundering To Unlock Ksh126.05 Billion Loan

The government has reached a staff-level agreement with the International Monetary Fund (IMF), which will allow for the disbursement of $976 million (Sh126.05 billion).

According to the IMF, the agreement will be part of a comprehensive policy package required to complete Kenya’s seventh review of its economic program under the Anti-Money Laundering and Countering Terrorism EFF/ECF arrangements.

“If approved by the IMF’s Executive Board, the total remaining access will be adjusted to 135.55 percent of quota (SDR735.77 million, about US$976 million) which will also include a proposed recalibration of 21.67 percent of quota in access (SDR117.6 million, about US$156 million) toward the zero-interest concessional resources under the ECF arrangement,” revealed Haimanot Teferra, the IMF country’s representative.

The agreement will also include a second review of the Resilience and Sustainability Facility (RSF) arrangements.

The facility provides affordable long-term financing to countries implementing reforms to reduce risks to future balance-of-payments stability, including those associated with pandemic preparedness and climate change.

The policy package aims to maintain debt sustainability and price stability to assist Kenya in managing its fiscal risks, as well as address financial sector vulnerabilities to support inclusive and resilient economic growth.

According to the IMF, the approval of the second review of the Resilience and Sustainability Facility will allow the government to receive an immediate disbursement of $120 million, which was approved on July 17, 2023.

IMF Orders Kenya To Curb Money Laundering To Unlock Ksh126.05 Billion Loan

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