Kenya gets $700 million 'insurance' financing from IMF, a first for Sub-Saharan Africa frontier markets

Nairobi city center at night

The IMF Executive Board approved February 2 a financing package for Kenya of about $700 million that the East African country’s authorities plan to use as insurance against external shocks.

This financing is precautionary, as Kenya plans not to draw on it unless the balance of payments comes under pressure.

The financing package approved by the Board involves “blended access”—combined general and concessional resources comprising a $504.3 million Stand-By Arrangement and a $194 million arrangement under the Stand-By Credit Facility. The move makes available a total of $543 million up front, with the remainder available in two equal tranches upon completion of semi-annual program reviews.

Read more: IMF Survey : Kenya Gets $700 Million from IMF as ‘Insurance’ Financing.