A team from the International Monetary Fund (IMF) is expected in Kenya in November to conduct the first review under the country’s latest loan which targets disbursements towards climate resilience interventions.
Kenya secured a fresh 20-month $551.4 million tenure, about Ksh80.2 billion, through the IMF’s Resilience and Sustainability Facility (RSF).
Among the reform measures committed to by the government is the Cabinet’s adoption of a national framework for climate services to enable dissemination of a digital early warning system, especially targeted at the most vulnerable counties in the arid and semi-arid lands.
The review date for this reform measure is October 7, 2023, which is one month away.
“Our team will come in to do the first review and discuss with the authorities the reforms progress and if satisfactory, the authorities can access the first batch of financing,” IMF’s Deputy Managing Director, Bo Li, told the Business Daily on the sidelines of the ongoing Africa Climate Summit.
The IMF estimates that Kenya can mobilise $3.3 billion, about Ksh477.0 billion, annually in climate finance between now and April 2025, of which 39 percent will be drawn from private sector organisations and the remaining amount from State-driven mobilisation.
“On the RSF programme, we have confidence that Kenya can deliver on its commitments. We need both public sector and private sector to come together in the mobilisation of climate finance resources,” Mr Li said.
Other reform commitments entered into by the government as part of the Ksh80.2 billion climate-linked loan include the Cabinet’s approval of net metering regulations and open access regulations by September 30, 2024, which are aimed at promoting energy efficiency in the country.
Net metering allows entities that have secured licences for power generation to offload any surplus into the national grid.