National Treasury and Planning says the just-secured IMF loan will be used to support the government’s reform plans and help meet financing needs.
In a statement released shortly after the International Monetary Fund Executive Board approved a Kshs.255 billion loan to Kenya, Treasury Cabinet Secretary Ukur Yatani said the facility will specifically go a long way in mitigating the effects of the covid-19 pandemic.
According to Yatani, the loan is so significant in that it will also aid the achievement of the government’s policy objectives set out in the recently approved 2021 Budget Policy Statement as well as the Medium-Term Plan 11.
“The 38-month program is an initiative of the government of Kenya, targeted at stabilizing the economy and supporting Kenya’s economic recovery and inclusive growth plan,” The Treasury CS said in a statement.
According to Yatani, the programme has four key deliverables that include, scaling up the covid-19 response in the immediate term, targeting the health and other sectors most impacted by the pandemic.
“Reducing debt vulnerabilities by pursuing revenue-driven fiscal consolidation plan in order to stabilize the debt to GDP ratio and ultimately set it on a downward path.” He said
Yatani noted that the early covid-19 response by the government by way of tax relief measures, additional public spending on health, and targeted social programmes were essential interventions whose sustenance however required additional resource mobilization.