The International Monetary Fund  (IMF) has agreed to disburse $433 million to Kenya as part of the $2.34 billion facility approved in April 2021, it said in a statement.

The agreement is subject to the approval of IMF management and the executive board in the coming weeks. 

 Kenya will have access to about $433 million, bringing the total IMF financial support to nearly $1.55 billion under its extended fund facility and extended credit facility.

In addition, the IMF statement said that the Kenyan economy has been resilient despite a challenging environment. 

Real GDP grew by 6% year-on-year in the first half of 2022, backed by robust services sector activity, notwithstanding a decline in agricultural output. 

“Food insecurity has increased due to a severe drought in parts of the country. Higher food and energy prices have pushed up inflation and pressured the external position.”

At the same time, the peaceful completion of elections has lifted uncertainty and credit to the private sector is expanding. 

IMF projected growth at 5.3% in 2022 amid domestic policy tightening and a global slowdown that are likely to also weigh on growth in 2023. 

The medium-term outlook remains favourable, supported by proactive reform efforts by the new government, the statement said.

(Editing by Seban Scaria )