Kenya Seeks Ksh.130B World Bank Loan.
Kenya and the World Bank are in discussions for a potential budget support loan this fiscal year.
According to a document posted on the bank’s website, the amount under discussion has been increased by a third to $1 billion (Ksh.129.8 billion).
This is higher than the initial amount of $750 million (Ksh.97.35 billion) that was previously stated by the Kenyan government.
Neither the government nor the World Bank has commented on the matter.
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However, the loan will still require approval from the bank’s board. The decision is expected to be made before the end of Kenya’s current financial year on June 30.
The proposed loan is a Development Policy Operations loan, which is tied to a pre-agreed policy area.
Kenya has been eligible for this type of financing since 2019 and has received four such loans, with the last one being in March.
Kenya’s economy is currently facing multiple challenges, including a high debt burden, limited fiscal space, drought, and a weakened currency.
The loan from the World Bank could provide much-needed support for the country’s budget and help alleviate some of these challenges.
Overall, the increased loan amount indicates a growing partnership between Kenya and the World Bank.
However, it remains to be seen how the loan will be used and whether it will have a positive impact on the country’s economy.
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