World Bank to Advance Ksh1.8 Trillion to Kenya Over Next 3 Years
Kenya is expected to receive loans totaling Ksh1.8 trillion ($12 billion) from the World Bank over the next three years to support the nation’s development goals.
The global financial institution stated in a statement that concessional financing for Kenya is currently worth Ksh 304.7 billion ($2 billion) annually.
The World Bank has officially verified in a statement that the current sum of commitments from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) is Ksh 1.26 trillion ($8.3 billion), of which Ksh670.4 billion ($4.4 billion) is accessible for payment.
”MIGA ( Multilateral Investment Guarantee Agency) is actively engaged with $424 million in guarantees covering the energy, transport, financial, fintech, and tourism sectors,” the World Bank pointed out in its statement.
Additionally, the World Bank reaffirmed its dedication to assisting Kenya in its ascent to upper-middle-income status by 2030.
Aligned with this objective, the Bretton Woods institution formally endorsed the allocation of Ksh685.6 billion ($4.5 billion) to Kenya by IDA and IBRD.
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”Over the three fiscal years, IDA/IBRD expect to provide an estimated $4.5 billion including fast-disbursing operations” the World Bank stated.
IDA will allocate Ksh 457 billion ($3 billion) of this sum, whereas IBRD will channel Ksh 228.5 billion ($1.5 billion).
The International Financial Corporation (IFC) will concurrently contribute Ksh 152.3 billion ($1 billion) in investment capital. MIGA is anticipated to provide a guarantee of Ksh 76 billion ($500 million) of this sum.
The statement by the World Bank was issued days after the International Monetary Fund granted Kenya a loan of Ksh 142.8 billion.
Kenya will be granted immediate access to Ksh103.8 billion (USD682.3 million) by the agreement.
The amount will assist Kenya in navigating its liquidity challenges and servicing its Eurobond Loans, according to the IMF.
World Bank to Advance Ksh1.8 Trillion to Kenya Over Next 3 Years