The International Monetary Fund executive board on Monday approved the disbursement of Ksh 28 billion to Kenya which is the third disbursement under review in the fund program.
According to IMF, the funds are to supplement the budget and will bring the total amount disbursed so far to Ksh 143 billion.
The board noted how the economy of the country has bounced back strongly even after facing challenges such as the COVID-19 pandemic even though they anticipate the inflation rate to rise to 7.5% this year before easing back to 2.5% as predicted by the Central Bank of Kenya.
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“Kenya’s economy has rebounded strongly in a challenging environment and is projected to grow 5.7% in 2022,”
“Downside risks predominate in the near-term. Uncertainties stem from the war in Ukraine, continuing drought in the semi-arid regions, unsettled global financial market conditions and the political calendar,” said IMF
IMF further took note of the impressive amount of tax collected by the Kenya Revenue Authority (KRA) in the financial year ending 2021/22 which has in turn helped the government cushion Kenyans from the rising cost of fuel.
“The approved fiscal year 2022/23 budget broadens tax collection and maintains careful expenditure control while protecting social spending,” said IMF