Kenya Receives Ksh 64 Billion Loan

The loan has been secured to provide a cushion against any sudden shortfalls in foreign currency that the country may experience.

In a statement the IMF has said the government does not intend to immediately use the loan.

It will only do so in the event of economic instability resulting from adverse weather patterns, insecurity threats and sudden changes in foreign investor sentiments.

The approval of the loan comes at a time when the government is embarking on major physical infrastructure development projects such as the Standard Gauge Railway project.

This project will require heavy importation of materials thus expending huge amounts of foreign currency.

Kenya's export sectors such as tea, horticulture and tourism are not performing well.

This has resulted in weak foreign currency inflows and a volatile exchange rate for the Kenyan shilling.

By Bonareri Samaha

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