It also faces huge budget deficits that have been deepened by the coronavirus crisis.
"The programme supported by EFF/ECF arrangements with the Fund provides a strong signal of support and confidence," IMF deputy managing director Antoinette Sayeh said in a statement. "The Kenyan authorities have demonstrated strong commitment to fiscal reforms during this unprecedented global shock and Kenya’s medium-term prospects remain positive."
Kenya was hit hard at the onset by the Covid-19 pandemic, but its economy has been picking up after posting an estimated slight contraction of 0.1 per cent in 2020, the IMF said.
The fund is forecasting a sharp swing to growth of 7.6 per cent in 2021 and 5.7 per cent in 2022, but said Kenya continued to face challenges in the return to durable growth, and its past gains in poverty reduction had been reversed.