Finance

Kenya Receives Record-breaking $1 Billion IMF Funding for Economic Reform and Climate Resilience

Under the Extended Fund Facility and Expanded Credit Facility, Kenya has received a substantial disbursement of $415 million.

Published

2 months ago

July 18, 2023

Samed Olukoya

The International Monetary Fund (IMF) has granted Kenya an extraordinary financial boost, approving a whopping $1 billion in funding.

This tremendous investment comes as a recognition of Kenya’s commendable efforts to meet the stringent conditions set forth by the IMF and combat the multifaceted challenges posed by climate change.

Under the Extended Fund Facility and Expanded Credit Facility, Kenya has received a substantial disbursement of $415 million.

Simultaneously, an additional $551 million has been allocated to Kenya through the Resilience and Sustainability Facility, aiming to bolster the country’s ambitious initiatives in building resilience against the adverse effects of climate change.

Remarkably, these disbursements follow the successful completion of the fifth reviews of the programs, signifying the government’s commitment to sustaining macroeconomic stability and fostering market confidence.

Despite enduring the harshest drought in decades and grappling with a challenging global environment, Kenya’s economy has demonstrated remarkable resilience, as acknowledged by Deputy Managing Director Antoinette Sayeh in a recent statement.

With this latest injection of funds, the cumulative disbursements under the ECF/EFF program will reach an impressive milestone of approximately $2 billion.

This substantial financial support serves as a testament to the IMF’s confidence in Kenya’s ongoing reform efforts and its commitment to addressing emerging challenges.

President William Ruto’s administration has been resolute in its determination to improve Kenya’s financial landscape by focusing on revenue generation and curbing excessive borrowing.

The country’s public debt, which stood at 9.63 trillion shillings ($68.1 billion) in April, accounts for approximately two-thirds of its gross domestic product, according to the National Treasury.

Kenya’s partnership with the IMF commenced in February 2021 when it embarked on a 38-month program aimed at reducing debt vulnerabilities.

Recognizing the nation’s continued dedication to these goals, the program was extended by an additional 10 months, now set to conclude in April 2025.

The IMF has amplified its support by augmenting the package by 45% to a substantial $3.52 billion, incorporating extra funds to fortify Kenya’s resilience against the impact of climate change through the Resilience and Sustainability Facility.

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Banking Sector

Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting

Published

18 hours ago

September 22, 2023

Investors King

The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.

Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.

In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”

While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.

President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.

The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.

The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.

Banking Sector

Currency in Circulation Surges by N1.7 Trillion Amidst Rising Cash Transactions

Published

19 hours ago

September 22, 2023

Investors King

The currency in circulation in Nigeria has surged by N1.7 trillion, driven by a surge in cash transactions.

According to data obtained from the Central Bank of Nigeria (CBN), as of the end of August, the currency in circulation rose to N2.7 trillion.

This substantial increase in currency in circulation comes after a 235.03 percent dip to N982.1 billion as of the end of February 2023 from N3.29 trillion at the close of October 2022, primarily due to the naira redesign policy spearheaded by the CBN.

However, the currency in circulation began its steady ascent once the policy concluded. Cash that had been previously withdrawn from circulation to promote electronic payments was reintroduced into the economy, contributing to this significant boost.

The data obtained from the CBN reveals that a whopping N2.3 trillion was removed from circulation during this period.

The CBN defines currency in circulation as all legal tender currency in the hands of the general public and within the vaults of Deposit Money Banks, excluding the central bank’s vaults.

The CBN further elucidated its methodology, stating that it employed an “accounting/statistical/withdrawals & deposits approach” to calculate the currency in circulation in Nigeria. This approach meticulously tracks the movement of currency in circulation on a transaction-by-transaction basis.

Under this methodology, each withdrawal made by a Deposit Money Bank at one of CBN’s branches results in an increase in currency in circulation (CIC), while each deposit made by a DMB at one of CBN’s branches leads to a decrease in CIC.

This surge in currency in circulation reflects the evolving landscape of financial transactions in Nigeria and underscores the importance of flexible monetary policies in facilitating economic growth and stability.

Finance

Oyo/Osun Customs Command Exceeds Revenue Target, Collects N47.4 Billion in Nine Months

Published

2 days ago

September 21, 2023

Samed Olukoya

The Oyo/Osun Area Command of the Nigeria Customs Service has reported a better-than-expected achievement in revenue collection, exceeding its targets while also making significant seizures of prohibited goods.

Outgoing Customs Area Comptroller, Babajide Jaiyeoba, made this announcement during the recent handover ceremony at the command in Ibadan, Oyo State.

Between January and September, the command generated N47.4 billion in revenue, according to Jaiyeoba. The customs area comptroller attributed this success to the dedicated officers and their unwavering professionalism, urging them to continue working as a cohesive team within the bounds of the law.

Under his leadership, the command also made seizures of prohibited goods valued at N308 million over the past nine months, a testament to their commitment to suppressing smuggling and upholding the customs regulations. Moreover, the command surpassed its revenue target set for the year 2022.

In a smooth transition of leadership, Ben Oramalugo assumed office as the new Comptroller. He emphasized the core duties of customs officers, which include revenue generation, trade facilitation, and the suppression of smuggling. Oramalugo pledged to uphold these mandates and called upon all officers to extend their cooperation to him as they did to his predecessor.

With these recent achievements and a committed leadership transition, the Oyo/Osun Area Command of the Nigeria Customs Service is well on its way to achieving even greater heights in revenue collection and ensuring compliance with customs regulations.