Ahead of the fifth review of its multi-year arrangement with Kenya on Monday, the International Monetary Fund (IMF) has already positioned itself as a key shaper of the country’s monetary and fiscal policies.
From the increase of contributions to the National Social Security Fund to new taxes, elimination of fuel subsidies and even the expansion of the affordable housing project, the global lender has had a hand in recent policy pronouncements by the Kenya Kwanza administration.
Read: IMF, World Bank fingerprints on Kenya’s $26bn Budget
The IMF Executive Board will meet next week to provide the green light for the continuation of its single biggest credit arrangement with Kenya under the extended fund and extended credit facilities in addition to considering a request for a new 20-month arrangement under the resilience and sustainability facility.
The forum will see the Washington-based institution monitor the progress of the country’s fiscal and monetary reforms, which are a prerequisite to the fund’s continued support.
During the last review in December, the IMF disclosed key fiscal and monetary policy reforms that Kenya was to execute in alignment with the multi-year arrangement which is largely underpinned on access to funding.
