Ruto Given Immediate Access To Ksh65 Billion
The IMF has granted President William Ruto’s government prompt access to Ksh65 billion to aid Kenya’s economic recovery efforts.
This information was disclosed in the Macro-Economic Outlook report, which was showcased during the preparation for the Medium Term Budget of the 2024/25 Financial Year.
The National Treasury stated that Ruto’s government was granted funds after the fifth assessment within the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) agreements on July 17, 2023.
At that moment, Kenya was granted an increase in access amounting to Ksh86 billion under the EFF/ECF, constituting 75 percent of the designated allocation.
“Kenya will have immediate access to SDR 306.7 million (USD 410 million), including from the augmentation of access under the ECF/EFF,” the report read in part.
SDR stands for Special Drawing Rights, which are additional reserve assets established and upheld by the International Monetary Fund (IMF).
As per the international financial organization, Special Drawing Rights (SDRs) serve as IMF’s accounting units, and although their monetary value can be computed, they aren’t classified as currency.
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In this instance, Kenya received 306 million Special Drawing Rights (SDRs), equivalent to USD 410 million, which translates to approximately 65 billion Kenyan shillings.
Moreover, in the fifth assessment, there was consensus to prolong the EFF/ECF agreement by 10 months until April 2025.
“IMF (further) agreed on a new 20-month Resilience and Sustainability Facility (RSF) arrangement with access also of 75 percent of quota that will run in parallel with the EFF/ECF arrangements until April 2025,” the report noted further.
The IMF and World Bank have played significant roles in backing President William Ruto’s development plans by providing substantial, extended loans.
Since assuming the presidency in September 2022, President William Ruto has been allocated more than Ksh316 billion (equivalent to USD2 billion) from these two organizations.
Together with the monetary assistance provided to the previous administration of President Uhuru Kenyatta, the total IMF financial aid distributed through the EFF/ECF programs equals SDR 1,509 million, which is equivalent to more than Ksh300 billion.
Ruto Given Immediate Access To Ksh65 Billion