The International Monetary Fund (IMF) Executive Board, on Monday 12 March, approved the request by the Kenyan authorities for a 6-month extension of the country’s Stand-By Arrangement (SBA).
The extension period has been granted to enable Kenyan authorities to finalise the outstanding reviews, whose deadline is September 2018. Once the reviews are finalised, Kenya will have access to funds available under the cautionary SBA.
The current SBA which expired on March 14, 2018, was approved on 14 March 2016 for 24 months as a precautionary facility against a harsh economic environment.
“The authorities requested a six-month extension of the SBA that expires on March 13, 2018, to allow more time to complete the outstanding reviews of the IMF-supported program. In support of this request, the authorities have committed to policies to achieve the program objectives, including reducing the fiscal deficit and substantially modifying interest controls. Discussions on the details of these policies will continue in the coming weeks. The SBA extension will be presented to the Executive Board before its expiration on March 13, and outstanding program reviews could be completed by September 2018 […],” IMF said earlier this month.
The Executive Board’s decision was made without a formal meeting, an occurrence that happens when members agree that they can consider a proposal without meeting formally.
