The Kenyan government announced on Tuesday a shift in its external financing strategy, opting to access loans from multilateral lenders due to uncertainties in the global bond market.
Njuguna Ndung’u, cabinet secretary for the National Treasury and Economic Planning, said in a release from the capital Nairobi that the country had approached the World Bank, the International Monetary Fund (IMF), and other development partners for funding, in addition to stepping up efforts to improve macro-economic environment and carry out structural reforms.
“Kenya will pursue commercial funding once global market conditions improve,” Ndung’u said.
The World Bank disclosed on Monday its plan to provide Kenya with 12 billion U.S. dollars over the next three years. Similarly, on Nov. 16, the IMF announced a total funding of 4.43 billion dollars for Kenya from 2024, with access to 682.3 million dollars in January 2024.
Ndung’u clarified that these funds would safeguard the economy from global shocks associated with drought, inflation, unpredictable international commodity prices, and tighter external financing conditions.
He further noted that despite liquidity challenges, the country’s macroeconomic conditions remain stable, with the real gross domestic product expanding by 5.4 percent in the first half of the year.