- World Bank committed to support Kenya's economic recovery by earmarking an extensive financial support package of $12 billion over the next three years.
- Concurrently, the IFC plans to inject approximately $1 billion into Kenya's development initiatives.
World Bank has pledged to advance to Kenya a loan of $12 billion, which is equivalent to Sh1.8 trillion, towards supporting the government’s development projects over three years.
World Bank says the development financing facility testifies to the Bretton Woods institution’s longstanding partnership with Kenya to support her economic recovery efforts.
Kenya currently access an annual inflow of $2 billion in concessional financing, with combined pledges from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) totaling $8.3 billion.
The available disbursement pool is currently $4.4 billion, while the International Finance Corporation (IFC) contributes significantly with an investment portfolio totalling $1.2 billion.
The Multilateral Investment Guarantee Agency (MIGA) is providing Kenya with guarantees of $424 million across vital sectors such as energy, transport, finance, fintech, and tourism.
World Bank has indicated, in a statement detailing the facility advancement, that the loan is strategically aligned with Kenya's vision to rise to an upper-middle-income status by 2030.
Over the coming three fiscal years (FY24-FY26), IDA and IBRD are set to extend about $4.5 billion, IDA $3 billion and IBRD $1.5 billion) encompassing swift-disbursing operations.
Concurrently, IFC projects that it will inject approximately $1 billion into the country's development landscape, while MIGA's guarantees are poised to reach around $500 million.
The projected financial package, if approved by World Bank Executive Directors, is aimed at boost Kenya's economic resilience and foster sustainable growth amid a tough economy.