NAIROBI, Sept 8 – Kenyan President Mwai Kibaki said on Thursday the government was seeking an early disbursement of funds under an agreed IMF facility to ease pressure on the shilling and help restore order to domestic markets.
The International Monetary Fund confirmed Kenya had sought the additional funds to cope with the impact of a prolonged drought and high prices in the east African country, where inflation stood at 16.67 percent in August.
The shilling has lost more than 15 percent against the dollar this year and the central bank’s attempts to stem the weakening last month through liquidity management sent interbank rates sharply higher, prompting the government to weigh in.
Source: Reuters Africa newsletter
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