Kenya gets nearly $1b loan from IMF

NAIROBI, Nov 16 (AFP): The International Monetary Fund said Thursday it had agreed a $938-million loan for Kenya, which is grappling with a liquidity problem and historically high debt levels.

East Africa's economic powerhouse is facing a host of challenges, including depleted government coffers, skyrocketing inflation and a plunging currency that has sent debt repayment costs soaring.

The impact of the Covid pandemic as well as the Ukraine war and a record drought in the Horn of Africa region have all taken a serious toll.

The nation of some 53 million people had accumulated more than 10.1 trillion shillings ($66 billion) in debt by the end of June, according to Treasury figures, equivalent to around two-thirds of gross domestic product.

Kenya also has a $2-billion eurobond repayment due next year. "This uncertainty is exerting substantial pressure on liquidity, primarily due to the sizeable eurobond maturing in 2024," the IMF said in a statement.