NAIROBI (Xinhua) --
The International Monetary Fund (IMF) clarified on Wednesday
that Kenya still has access to the 1.5-billion-U.S.-dollar
standby credit facility since June 2017.
Representative in Nairobi Jan Mikkelsen said the facility is
available until the end of March and was not suspended seven
months ago due to non-compliance with fiscal deficit targets.
Stand-By Arrangement and a Stand-By Credit Facility (SBA/SCF)
arrangement remains in place until end-March 2018,” Mikkelsen
said in a statement issued in Nairobi.
He said the second
and third reviews of the program, due respectively in June and
December 2017, could not be completed on schedule as agreement
could not be reached on stronger fiscal policies, and
discussions were postponed due to the prolonged election period.
“Kenya continues to
have access to resources since June subject to policy
understandings to complete the outstanding reviews,” Mikkelsen
He said an IMF staff
team is currently in Nairobi for discussions on a possible new
Media reports on
Tuesday said the East African nation’s access to the facility
had been lost due to lack of an agreement, blaming the Treasury
and the Central Bank Kenya (CBK) for hiding the issue from the
Kenya had received
approval to access the facility in March 2016 to provide a
policy anchor for continued macroeconomic and institutional
reform, and help mitigate the impact of potential exogenous
shocks to the economy if they were to materialize.