The International Monetary Fund (IMF) has approved the seventh and eighth reviews of Kenya’s economic program, unlocking a $606 million loan tranche critical to easing the country’s liquidity challenges. The East African nation, under financial pressure due to heavy debt repayments, now has renewed access to funds to support its economy.

The IMF’s board-level approval follows delays sparked by a wave of violent protests that saw more than 60 people killed and forced President William Ruto to shelve a contentious finance bill, which had proposed multiple tax hikes. The unrest initially hindered the disbursement of funds after Kenya reached a preliminary agreement with IMF staff in June on the seventh review of its $3.6 billion program.

Despite these disruptions, the IMF noted Kenya’s relative economic resilience in challenging conditions. “Kenya’s economy remains resilient, with growth above the regional average, inflation decelerating, and external inflows supporting the shilling and a buildup of external buffers,” said Gita Gopinath, the IMF’s First Deputy Managing Director.

However, the IMF also highlighted Kenya’s difficult balancing act of raising domestic revenues to fund essential programs while managing substantial debt obligations. A call for enhanced governance and transparency accompanied the announcement, emphasizing the need for sustainable fiscal practices in Kenya’s management of funds.

This latest approval includes lending under the IMF’s Resilience and Sustainability Facility (RSF), which aims to support Kenya in its fiscal stabilization efforts. The IMF’s support is seen as a crucial lifeline as the nation grapples with high debt service costs.

Looking ahead, Kenyan officials have signaled their intention to negotiate a new program with the IMF after the current one expires in April 2025, further underscoring the government’s reliance on international support to navigate a challenging fiscal landscape.