Kenya has requested a new IMF program after failing to secure $800 million from an existing facility, which ends on April 1. The country has not met important fiscal targets, leading to a projected budget deficit and ongoing economic challenges.
Kenya has submitted a request for a new funding program from the International Monetary Fund (IMF) after it opted not to conduct a final review of its existing facility, which would have released $800 million. The current four-year program, totaling $3.6 billion, will conclude on April 1, leaving Kenya with a significant budget-financing gap without the pending disbursement.
In summary, Kenya faces crucial fiscal challenges as it seeks a new IMF program amidst the expiration of its current facility. The failure to meet financial benchmarks has led to a budget shortfall, exacerbated by ongoing economic pressures. As the country navigates these issues, strategic adjustments to its borrowing and revenue generation will be essential for financial stability.
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