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
IMF Staff Country Reports, May 11, 2020
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- 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
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Bibliographic details
- Published: May 11, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513543284.002
Summary of economic impact and financing needs
- The coronavirus disease 2019 pandemic is taking a serious toll on the Kenyan economy, significantly reducing growth and creating fiscal and external financing needs.
- 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 Rapid Credit Facility (RCF) will deliver liquidity support to help Kenya cover its balance of payments gap this year.
- The RCF financing will provide resources for fiscal interventions to safeguard public health and support households and firms affected by the crisis.
- RCF financing is expected to catalyze necessary financing from other donors.
Policy recommendations and macroeconomic guidance
- It is important that the authorities resume their fiscal consolidation plans to reduce macroeconomic vulnerabilities once the crisis abates.
- The Central Bank of Kenya (CBK) 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 continue to allow the exchange rate to act as a shock absorber.
Financial sector and central bank actions
- The Central Bank of Kenya (CBK) has taken various measures to maintain enough liquidity in the financial sector.
- Continued CBK readiness to support liquidity and financial sector health is emphasized, conditional on data-driven policy decisions.
Subjects and keywords
- Subjects: 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
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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