The loan is one of the biggest the IMF has granted on the continent: The city skyline of Nairobi stands beyond Uhuru Park in Nairobi, Kenya. The IMF announced that its board approved the precautionary loan for the country. PHOTO: BLOOMBERG NEWS
Kenya Secures $1.5 Billion IMF Loan
NAIROBI, Kenya—Kenya, east Africa’s largest economy, has secured a $1.5 billion loan from the International Monetary Fund, a facility it is allowed to tap only in case of emergency.
The IMF announced late Monday that its board approved the precautionary loan, formally described as “standby,” meaning Kenya won’t use it unless it needs to, unlike many standard bailout loan programs the IMF gives.
The loan is one of the biggest the IMF has granted on the continent as part of a renewed push to help fragile economies here.
It will be available to drawn on if needed for two years, and replaces a similar loan that lapsed this month but, at roughly $750 million, was half the amount of the renewed one.
Kenya is seen as one of the few major African economies surviving relatively well a combined malaise of low commodity prices and a Chinese retrenchment that is affecting some of the continent’s biggest economies. It is a net oil importer and doesn’t rely on Chinese demand for ores or other mineral exports.READ MORE