World Bank to give Kenya over Sh1.8 trillion loans and investment
Kenya is set to receive financing of up to $12 billion (Sh1.8 trillion) from the World Bank Group over the next three years.
The facility is, however, subject to approval by the Group’s executive directors.
In a statement Monday, the group said Kenya currently accesses about $2 billion (Sh300 billion) in concessional financing each year.
The International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD) commitments stand at $8.3 billion (Sh1.24 trillion), with $4.4 (Sh660 billion) available for disbursement.
IDA and IBRD are part of the five institutions of the Bank.
They are expected to provide an estimated $4.5 billion (Sh675 billion) including fast-disbursing operations.
Out of this amount, $3 billion (Sh450 billion) will be from IDA while $1.5 billion (Sh225 billion) is from IBRD.
“International Finance Corporation’s (IFC) investment portfolio is $1.2 billion (Sh180 billion),” reads the statement in part.
Multilateral Investment Guarantee Agency (MIGA), it adds, is actively engaged with $424 million (Sh63.6 billion) in guarantees covering the energy, transport, financial, fintech, and tourism sectors.
The disbursement of the funds, the bank says will depend on directors’ approval of new operations, “and to factors which may affect the Bank's lending capacity”.
IFC will provide roughly $1 billion (Sh150 billion) in investments and MIGA $500 million (Sh75 billion).
“Looking ahead, the World Bank is fully committed to supporting Kenya in its journey to become an upper-middle-income country by 2030,” it further states.
The announcement by the Bank comes a few days after the International Monetary Fund (IMF) said it had reached a staff-level agreement to expand its financing to the country by $938 million (Sh142.6 billion).
The agreement immediately unlocks access to a $682.3 million (Sh103.7bn) tranche, IMF said on Thursday.
"The agreement is subject to IMF management approval and consideration by the Executive Board, which is expected in January 2024," it said.
