IMF: Kenya gets Sh25bn to boost shilling on approval
The International Monetary Fund (IMF) mission has approved Kenya’s request for an extra Sh25 billion to boost the country’s foreign exchange reserves, giving the government’s efforts to stabilise the shilling a boost.
This now brings to Sh75 billion ($750 million) the loan the international lender has given to the country under the ongoing Extended Credit Facility meant to support recovery of the shilling.
Mr Domenico Fanizza, head of the IMF mission in the country, however, said that the approval was subject to further approval by its executive board even as he called for further tightening of monetary policy to stem inflation that hit 18.91 per cent last month.
“The authorities and the mission reached an understanding on economic policies and reforms to maintain macro-economic stability and promote growth prospects while ensuring debt sustainability. In particular, they concurred that in the near term, high inflation poses a threat to the economic outlook that needs to be resolutely addressed,” said Mr Fanizza.
“The Board is expected to take up the review, the request for higher financing in December 2011.”
The country was seeking between Sh25 billion to Sh35 billion from the IMF over and above the Sh50 billion granted early this year, to boost its foreign exchange reserves.
