Kenya has secured fresh financial support from the World Bank in a move that the government says will strengthen public financial management, fight corruption, and improve social protection for millions of vulnerable citizens.
The latest package, approved on June 29, 2026, provides US$750 million (approximately KSh.97 billion) under the Second Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation (DPO).
The financing combines a US$340 million loan from the International Bank for Reconstruction and Development (IBRD) and US$410 million in highly concessional financing from the International Development Association (IDA), with part of the funding earmarked to support refugees and host communities.
Unlike infrastructure loans that finance roads, railways or dams, this facility is designed to support reforms that improve how the government manages public resources.
The World Bank says the funding is intended to help Kenya build stronger institutions by promoting transparency, improving procurement systems, strengthening public financial management, and expanding social protection programmes. The broader objective is to create an environment that attracts private investment, creates jobs and supports long-term economic growth.
For ordinary Kenyans, these reforms may not be immediately visible, but they have the potential to influence how efficiently public money is spent and how government services are delivered.
Stronger Governance
A major pillar of the programme is the fight against corruption.
The World Bank cited Kenya’s recently enacted Conflict of Interest Act and the Conflict of Interest Regulations, 2026, which introduce clearer rules to prevent public officials from using their offices for personal gain.
The new regulations tighten disclosure requirements, strengthen penalties for violations and establish clearer procedures for detecting and investigating conflicts of interest.
According to the World Bank, stronger governance will help reduce financial leakages and ensure taxpayers’ money reaches the programmes and projects it is intended to support.
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Another important reform supported by the financing is the implementation of the Treasury Single Account, a system that consolidates government cash resources into one central account.
Currently, government funds are spread across numerous accounts held by different ministries, departments and agencies. Consolidating these accounts is expected to improve oversight of public finances, reduce unnecessary borrowing costs and minimise opportunities for misuse of public funds.
The programme also promotes electronic government procurement, making public tenders more transparent, competitive and easier to audit.
Protecting Vulnerable Households
Part of the funding will strengthen Kenya’s social protection programmes.
The reforms support implementation of the Social Protection (General) Regulations, 2026 and the continued use of the Enhanced Single Registry, a digital database that helps identify households eligible for government assistance.
The goal is to ensure social support reaches the people who need it most while reducing duplication and improving accountability in the distribution of public benefits.
World Bank Division Director for Kenya, Qimiao Fan, said the reforms go beyond improving government systems.
Kenya’s Loans From World Bank Since 2022
The latest US$750 million approval is the newest chapter in what has become one of the closest financial partnerships between Kenya and the World Bank under President William Ruto’s administration. Since taking office in September 2022, the government has increasingly turned to the Bretton Woods lender to finance both development projects and budget support as it seeks to manage debt pressures, fund reforms and stimulate economic growth.
Shortly after President Ruto assumed office, the World Bank approved financing for the Horn of Africa Gateway Development Project, committing US$750 million to improve transport infrastructure and regional connectivity. The project aims to open up northern Kenya, boost trade with neighbouring countries, and create economic opportunities in historically underserved regions.
In 2023, Kenya secured one of its largest budget support facilities from the World Bank when the lender approved a US$1 billion Development Policy Operation (DPO). Unlike project-specific loans, this funding was intended to support broad economic reforms, strengthen fiscal management, improve governance and help the government stabilize public finances at a time when debt servicing costs and inflation were placing significant pressure on the economy.
Throughout 2024, the World Bank continued backing Kenya through several investment projects spanning affordable housing, agriculture, water, transport, education and climate resilience. Rather than one large facility, the financing came through multiple approvals targeting sectors considered critical for long-term economic development and job creation.
The momentum continued in 2025, with additional financing directed toward infrastructure, agriculture, urban development and programmes aimed at improving resilience to climate change.
These investments point the World Bank’s continued support for Kenya’s development agenda while encouraging reforms to improve public financial management and service delivery.
In early 2026, the World Bank approved US$293 million for the Housing Finance, Lands and Sustainable Urban Investments Project, designed to improve access to affordable housing and strengthen urban planning. It also approved an additional US$550 million to expand the Horn of Africa Gateway Development Project, allowing more transport and connectivity works to proceed.
