Kenya now has a six-month extension on its IMF’s Stand-By Agreement. The East African country, last week, sought and got its request for extension approved by an executive board of the International Monetary Fund, IMF. The country’s Stand-by Agreement sought for $989.8 million in March 2016 is due to expire in March 2018. Kenya also has a stand-by credit of about $494.9 million.
The IMF Stand-By Arrangement (SBA) is an economic program of the International Monetary Fund (IMF) involving financial aid to a member state in need of financial assistance, normally arising from a financial crisis.
The IMF in a statement on Tuesday said Kenya was allowed the “additional time to complete the outstanding reviews.” The reviews, the Fund said, were expected to be completed by September, allowing access to the funds available in the stand-by agreement.
“In support of this request, the authorities have committed to policies that will enable them to achieve the program objectives, including reducing the fiscal deficit and substantially modifying interest controls,” IMF said.
Newsbreak.ng gathered from ‘Trading Economics’ that Kenya currently has external debt of 2357 Kenyan shillings (about $2.3billion).