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The International Monetary Fund (IMF) has said its executive board has approved a Ksh55.1 billion($ 447.39 million) disbursement to Kenya to help boost the country’s foreign exchange.

The loan approval follows a review of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) financial deal between IMF and the country.

The arrangements aim to support the country’s program to address the vulnerability of debts, global shocks, and enhance broader economic reforms.

“Kenya’s commitment to its economic program supported by the Fund’s EFF and EDF facilities is anchoring debt sustainability. The economy has performed well amid slowing global growth, tighter financing conditions and volatile commodity prices while continuing drought has increased food insecurity, and climate-related risks pose ongoing challenges,” IMF’s Deputy Managing Director and Acting Chair Antoinette Sayeh stated.

According to the New York-based bank, the amount which is part of the 38-month financial plan which was first approved in April 2021 rises the cumulative disbursements to Ksh297.3 billion ($2.416 billion).

Kenya’s stock of dollars at the central bank dropped to just the required 4 months of import cover meaning the reserves could fall under the statutory requirement if the cash is delayed.

Kenya has been priced out of the Eurobond markets making it hard for the country to access foreign exchange that it needs to buy oil, food, medicine and other key imports.