Kenya is set to receive an additional loan worth millions following an agreement with the International Monetary Fund (IMF).
In a statement, IMF Chief in Kenya Mary Goodman said the government and IMF agreed on policies to complete the third review that will see Kenya receive a KSh 28 billion loan.
The disbursement of the loan would be subject to approval by IMF’s executive board.
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“Upon completion of the Executive Board review, Kenya would have access to KSh 28.2 billion bringing the total IMF financial support under these arrangements to KSh 136.3 billion,” Goodman said.
The money will be used to shield against shocks caused by new challenges, including rising global energy, fertiliser and food prices.
As earlier reported, IMF supported Kenya’s decision to tax cooking gas and bank loan fees.
IMF argued that taxing the essential good and service has helped the country to raise additional cash resulting to price reduction for fuel and fertiliser.
IMF Mission Chief to Kenya Mary Goodman further noted that the new taxation has bore fruit saying its latest review of the economy have resulted in strong tax collections.
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“Kenya’s fiscal position has been underpinned by strong tax revenue performance this year, buoyed by a robust economic recovery and the important tax policy measures already undertaken as part of multi-year plan to reduce debt-related vulnerabilities,” Goodman said.
The taxation measures include 16 percent levy on cooking gas and raising of excise duty on airtime and data to 20 percent from 15 percent.