NAIROBI, April 26 (Xinhua) -- Kenya is set to receive 244 million U.S. dollars loan from the International Monetary Fund (IMF) following a successful review of the country's economic progress, the IMF said in a statement on Monday evening.
The loan is part of 1.65 billion dollars total amount Kenya and IMF agreed for disbursement in April 2021 for economic recovery support.
"Upon completion of the executive board review, Kenya would have access to 244 million dollars, bringing the total IMF financial support under the arrangements to 1.178 billion dollars," said IMF.
The international lender noted that the Kenyan economy has been staging a robust recovery as the effects of the pandemic wane.
"Spillovers from the war in Ukraine are expected to have a modest impact on growth in the near term, as Kenya's direct exposure to Russia and Ukraine is relatively limited," said IMF.
The lender projects that the Kenya's economy would grow by 5.7 percent in 2022, following a pickup in agriculture and continued recovery in services and other sectors.
"Spillovers from the war in Ukraine are expected to temporarily push up inflation as domestic retail fuel prices gradually rise to global levels. The Central Bank of Kenya (CBK) has stated that it stands ready to take appropriate action to contain second-round effects of higher global prices on inflation," said the IMF.
According to the institution, Kenya is on track to meet its fiscal objectives and put debt as a share of gross domestic product firmly on a downward path.
The country's fiscal position has been underpinned by strong tax revenue performance this year, buoyed by a robust economic recovery and the important tax policy measures already undertaken as part of Kenya's multi-year plan to reduce debt-related vulnerabilities, added the IMF.
It noted that Kenya's banking sector has remained resilient, supported by steps taken by the CBK to sustain the economy and help households and businesses navigate the challenging environment.