New disclosures reveal that in 2023, the Treasury accessed Sh105 billion from the dollar reserves received by the Central Bank of Kenya from the IMF in the form of Special Drawing Rights (SDRs).
These funds, designed to bolster liquidity for member countries, were part of the IMF’s efforts to alleviate balance of payment constraints amid the Covid-19 pandemic.
With Kenya’s SDR holdings standing at Sh37.9 billion and allocations at Sh84.2 billion, these drawdowns contribute 2.1% to the nation’s overall domestic debt, offering critical financial support amidst challenging market conditions.
Despite tight revenue performance and fluctuating exchange rates, Kenya has strategically utilized SDR allocations alongside other funding sources to address liquidity challenges.
The IMF’s support through SDRs complements existing programs, expanding funding beyond current facilities and enhancing Kenya’s ability to navigate economic uncertainties.
This highlights the importance of innovative financial strategies in sustaining economic resilience and growth.
