• The IMF approved the disbursement of US$ 2 billion to be drawn under the Rapid Credit Facility (RCF) to small enterprises as part of helping them overcome the ravages of Covid-19.
• The COVID-19 pandemic is taking a serious toll on the Kenyan economy, significantly reducing growth, threatening thousands of jobs.
• The kitty will be channeled directly to qualifying enterprises or individual entrepreneurs.
• Terms of the loan include a repayment period of up to six years with zero interest rate which is what the SMEs needs.
Washington, DC – The Executive Board of the International Monetary Fund (IMF) today approved the disbursement of SDR542.8 million (100 percent of quota, about US$ 2 billion) to be drawn under the Rapid Credit Facility (RCF). The funds will be channeled directly to qualifying entities or individual entrepreneurs. This will help to meet Kenya’s urgent balance of payments need stemming from the outbreak of the COVID-19 pandemic.
The IMF is in close contact with the Kenyan authorities and stands ready to provide policy advice and further support, as needed.
At the conclusion of the Board discussion, Mr. Tao Zhang, Deputy managing Director and Acting Chair, stated:
“Emergency financing under the RCF will deliver liquidity support to help Kenyan SMEs cover their balance of payments gap this year. It will provide much-needed resources for fiscal interventions to safeguard thousands of jobs and support households and firms affected by the crisis. It will also catalyze necessary financing from other donors.
Terms of the loan include a repayment period of up to six years with zero percent interest rates. IMF projects that accessing credit under concessionary terms, including easier repayment plans that include extended grace periods, could reverse the impact of the corona virus and help the economy out of a potential recession.
How to apply
All requests can be submitted electronically to https://loanstream.com/IMF/form/defaults/en/.
If you have questions, please send them by e-mail to the IMF Loan Program at firstname.lastname@example.org.