Republic of Kenya: Request for Disbursement under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Kenya

May 11, 2020

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Format: Chicago

Republic of Kenya: Request for Disbursement under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Kenya, (USA: International Monetary Fund, 2020) accessed November 21, 2024

Summary

This paper discusses the Republic of Kenya’s Request for Disbursement Under the Rapid Credit Facility (RCF). The coronavirus disease 2019 pandemic is taking a serious toll on the Kenyan economy, significantly reducing growth, creating fiscal and external financing needs. It is important that the authorities resume their fiscal consolidation plans to reduce macroeconomic vulnerabilities once the crisis abates. The pandemic has impacted nearly all facets of the economy—particularly tourism, transport, and trade—and led to urgent balance of payments and fiscal financing needs. Emergency financing under the RCF will deliver liquidity support to help Kenya cover its balance of payments gap this year. It will provide much-needed resources for fiscal interventions to safeguard public health and support households and firms affected by the crisis. It will also catalyze necessary financing from other donors. The Central Bank of Kenya (CBK) has taken various measures to maintain enough liquidity in the financial sector. It should continue to stand ready to further support the economy and the financial sector’s health, as necessary, while ensuring that policy decisions are data driven. The CBK should also continue to allow the exchange rate to act as a shock absorber.

Subject: COVID-19, Economic and financial statistics, External debt, Government finance statistics, Health, Public debt, Revenue administration

Keywords: AFRITAC East, BOP financing gap, COVID-19, CR, Debt, Debt vulnerability, Emergency financing request, Expenditure measure, Financing, Fiscal financing, Global, Government finance statistics, ISCR, Kenya, WB mission

Publication Details

Pages:

57
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/156
Stock No:

1KENEA2020003
ISBN:

9781513543284
ISSN:

1934-7685

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