NAIROBI, June 29 (Reuters) – The board of the International Monetary Fund will meet next month to consider the latest review of Kenya’s performance in its current lending programme, a senior fund official said, potentially unlocking a $239 million tranche.
The East African nation struck a $2.34 billion extended fund facility and extended credit facility deal with the IMF in April last year, and it has already undergone other successful reviews.
The current review was “progressing well”, Tobias Rasmussen, the IMF’s resident representative in Kenya told Reuters, adding that the board is expected to meet in “mid-July” to complete the assessment.
“Kenya is on track to meet its fiscal objective under the programme, and strong tax performance this year is supporting resilience in the face of global shocks,” he said.
Ukur Yatani, Kenya’s finance minister, said the timing of the completion of the review was not crucial, as long as the government could access the $239 million at some point.
Read more: IMF urges countries to support vulnerable, avoid blanket subsidies as food, fuel prices soar
“As long as the funding comes in, it doesn’t matter whether it comes in June or July,” he told Reuters.
The government usually makes adjustments if the cash it has planned to get in the course of a given financial year does not materialise, he said, without specifying if the government was counting on the $239 million in its current fiscal year to June 30.
“We are fully in control. We knew that there could be some slight delays,” he said.
Earlier this month, Kenya was forced to cancel the planned issuance of a second Eurobond this financial year, due to surging bond yields. Read full story
The Kenyan dollar bonds are some of the worst performers among African issuers this year.
(Reporting by Duncan Miriri; Editing by Alison Williams)
