Kenya to receive Ksh.138 billion World Bank loan

The World Bank has approved a Ksh.138 billion loan for Kenya as a budget support facility, just a week after the International Monetary Fund (IMF) concluded a fifth review of the programme with Kenya for a further Ksh.56.8 billion loan.

This is after the multilateral lender ascertained that Kenya has committed to strengthen fiscal policies and undertake prudent debt management measures as part of the terms attached to the latest financing.

World Bank’s new loan is under the Fiscal Sustainability and Inclusive Green Growth Development Programme Operation (DPO).

“In governance, the DPO supports an important set of initiatives to promote objective decision-making through the Conflict-of-Interest Bill, to streamline the state’s orderly exit from commercial investments through amending the State-Owned Enterprises Privatization Act,” the World Bank says.

It comes after the Kenyan government made a request to the World Bank to raise the loan by 33 percent due to tightened global finance conditions.

These conditions have see the country shelve a planned Eurobond issuance which had been set for the fiscal year 2022/23.

Terms of the loan include half of the amount, Ksh.68 billion which will come from World Bank’s International Development Association (IDA).

Under IDA, the facility will target low-cost financing to low-income economies while the remaining.

The remaining half be drawn from the International Bank for Reconstruction and Development, (IBRD) which extends semi-concessional financing.

The repayment plan under the IBRD stretches for 18.5 years with a variable interest rate at 0.85 percent.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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