The International Monetary Fund has approved new three-year financing for Kenya valued at Sh 255.9 billion to help the government fight coronavirus.
In a statement on Saturday, National Treasury said the loan which is under the IMF's Extended Credit Facility and Extended Fund Facility includes an initial disbursement of Sh 79 billion which is due by the end of June 2021.
Treasury further disclosed that Sh 33.6 billion of the total amount which will be released immediately will be channelled to budget support.
According to Treasury, the balance will be disbursed following subsequent programme review that will be conducted approximately every 6 months.
Treasury is banking on the loan to reduce debt vulnerabilities, address weakness in state-owned enterprise and support financial stability.
While confirming the approval of the funding, IMF Deputy Managing Director Antoinette Sayeh said the fund will also be used to protect the vulnerable group.
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