Kenya, a financially struggling country in East Africa, has been given a fresh loan by the International Monetary Fund worth around $941 million.
Kenya is facing numerous economic difficulties, such as a massive debt mountain, a crisis related to the cost of living, and declining currency.
In a statement released on Wednesday, the IMF announced that the $941.2 million loan had been approved by its executive board, with $624.5 million being disbursed right away.
It further stated that the total payments made under various credit arrangements come to almost $2.6 billion.
The Washington-based organisation predicted that Kenya's GDP will increase by approximately 5% this year, down from a projected 5.1% in 2023.
"Kenya's economic growth persevered despite mounting internal and external obstacles," stated in a statement Antoinette Sayeh, acting chair and deputy managing director of the IMF.
The financing arrangements for Kenya "continue to support the authorities' efforts to sustain macroeconomic stability, strengthen policy frameworks, withstand external shocks, push forward key reforms, and promote more inclusive and green growth" .
The most recent Treasury data this month indicates that the total amount of Kenya's state debt is 10.585 trillion shillings ($65.5 billion).
Kenya abandoned its pledge in December to repurchase a piece of a $2 billion Eurobond that was scheduled to maturity in June.
Rather than face a possible default, Finance Minister Njuguna Ndung'u announced that the nation has paid $68.7 million in bond interest.
"In its unwavering commitment to upholding a resilient sovereign credit rating and facilitating access to new development financing, Kenya remains dedicated to fulfilling all debt obligations with international lenders," Ndung'u stated.
In November, President William Ruto declared that the national debt had "become a source of much concern to citizens, markets, and our partners" and unveiled a plan to purchase $300 million of the Eurobond.
To try to boost government coffers, Ruto has imposed a plethora of new or increased taxes, many of which have been challenged in court since they are extremely unpopular with those who are already struggling to pay for necessities.
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