IMF, Kenya Reach Staff-Level Agreement on $2.4 Billion Loan (1)

The International Monetary Fund reached a staff-level agreement with Kenya for a $2.4 billion loan that will partly support the country’s response to the coronavirus.

The three-year deal will also help Kenya begin to reduce its debt relative to gross domestic product, the lender said Monday in a statement. The program comes under the IMF’s Extended Fund Facility and Extended Credit Facility arrangements.

The pandemic battered East Africa’s largest economy, hitting tax revenue as movement restrictions weighed on activity. The fiscal deficit may widen to 8.9% of GDP this year as the government borrows more to spur an economic recovery ...