Kenya secures Ksh.86 billion from World Bank on conditions
Kenya has received a new Ksh.86 billion loan from the World Bank to help the country recover from coronavirus ravages.
The credit attracts an interest of three percent and is the second of its kind from the multilateral lender’s credit facility commonly referred to as Development Policy Operations (DPO).
WB’s loan interest is hospitable for Kenya in comparison to commercial loan interest rates.
“Kenya has maintained the momentum to make critical reforms progress despite the disruption caused by the pandemic,” said World Bank Country Director for Kenya Keith Hansen.
“The World Bank is pleased to support these efforts which are positioning Kenya to sustain its strong economic growth performance and steering it towards inclusive and green development,” he added.
The loan, however, has been tied with conditions on it, with Kenya expected to expedite some reforms in her financial systems.
Some of the conditions include the establishment of an electronic platform for public procurement to foster transparency and reduce opportunities for corruption.
“In addition, strong and sustainable growth is essential to achieve medium-term fiscal consolidation and to reduce the debt burden and related risks. The package includes measures to spur more private investment and growth, whilst strengthening the management of Kenya’s natural and human capital which underpin its economy,” added Sienaert.
The funding is forecasted to strengthen Kenya’s foreign currency, which serves as a major cushion for the shilling in the payment of external debt alongside utilities.
Kenya has already received its fourth loan from the DPO facility, bringing the total amount borrowed to Ksh.371.8 billion.