The Institute believes that the Kenyan economy has held up well in difficult conditions, despite the decline in activity in the agricultural sector, reports Le Figaro.
The International Monetary Fund (IMF) announced an agreement with the government of Kenya to allocate a new $433 million tranche of aid under its current assistance program. The agreement was reached at the end of Kenya's fourth commitment review and will bring the total amount already disbursed to $1.55 billion.
The Fund's Executive Board has not yet approved the signed agreement. In a statement, Nairobi review team leaders Mary Goodman and Tobias Rasmussen said progress had been made in terms of fiscal adjustment to reduce debt risks, though pressures remain high.
"The authorities are taking decisive measures to further reduce the budget deficit. (...) The government is going to propose a new budget that will include further spending cuts," as well as more targeted aid, in particular to help regions affected by the drought that hit the country. Overall, they believe that the Kenyan economy has held up well under difficult conditions, despite the decline in activity in the agricultural sector. In April 2021, the IMF approved a $2.34 billion, 38-month assistance program.