World Bank projects $12bn disbursements to Kenya
“The World Bank is fully committed to supporting Kenya in its journey to become an upper-middle-income country by 2030,” the statement said. “Subject to the World Bank Executive Directors approval of new operations, and to factors which may affect the bank’s lending capacity, this implies a total financial package of $12 billion over the three years.”
The World Bank predicted on Monday that it will provide $12 billion in aid to Kenya over the following three years, which may significantly ease the financial strains on the East African nation.
The bank added in a statement that the entire sum was contingent on the executive directors’ approval and other variables that may affect the bank’s ability to lend money.
As seen in the American news platform, Reuters, frequent droughts brought on by climate change and the COVID-19 pandemic’s impact have put strain on Kenya’s national budget.
“The World Bank is fully committed to supporting Kenya in its journey to become an upper-middle-income country by 2030,” the statement said. “Subject to the World Bank Executive Directors approval of new operations, and to factors which may affect the bank’s lending capacity, this implies a total financial package of $12 billion over the three years.”
Kenya currently has $12 billion available from the International Development Association, the International Bank for Reconstruction and Development, the International Finance Corporation, and the Multilateral Investment Guarantee Agency, according to World Bank Country Director Keith Hansen, “plus what we expect to provide in the coming three years.”
“This will likely include Development Policy Operations as well as new investments in a wide range of sectors such as energy, health, transport and water,” Hansen added.
Kenya has had severe liquidity problems as a result of uncertainties about its capacity to secure finance from financial markets before a $2 billion Eurobond matures next June.
The International Monetary Fund signed a staff-level agreement with Kenya this week, granting the country immediate access to another $682 million tranche of money and increasing its current lending program by $938 million.
According to Hansen, the World Bank sought to “make clear the likely magnitude of resources Kenya can count on” in light of recent government pronouncements and the IMF staff consensus.
