Shilling exposed as IMF withdraws dollar cover

The precautionary facility has been one of tools that have helped Kenya stabilise the shilling against the dollar. FILE PHOTO | NMG

The Kenyan shilling has been left exposed to the turbulence of foreign exchange markets after it emerged that the International Monetary Fund (IMF) stopped Nairobi’s access to a Sh152 billion ($1.5 billion) precautionary facility seven months ago.

Kenya was yet to draw down on the two-year facility, which has been a key component in the country’s ability to weather economic shocks since March 2016.

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