The World Bank has projected that it will advance Ksh1.8 trillion ($12 billion) worth of loans to Kenya over the next 3 years to boost the country’s development aspirations.
In a statement, the global financial institution stated that Kenya is currently receiving Ksh 304.7 billion ($2 billion) every year in the form of concessional financing.
In a statement, the World Bank confirmed that commitments from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) now stand at Ksh 1.26 trillion ($8.3 billion) with Ksh670.4 billion ($4.4 billion) available for disbursement.
”MIGA ( Multilateral Investment Guarantee Agency) is actively engaged with $424 million in guarantees covering the energy, transport, financial, fintech, and tourism sectors,” the World Bank pointed out in its statement.
President William Ruto addressing the media at State House on November 7, 2023.
World Bank further affirmed that it is committed to supporting Kenya in its journey to become an upper-middle-income country by 2030.
In line with this vision, the Bretton Woods institution confirmed that IDA and IBRD will funnel Ksh685.6 billion ($4.5 billion) to Kenya.
”Over the three fiscal years, IDA/IBRD expect to provide an estimated $4.5 billion including fast-disbursing operations” the World Bank stated.
Out of this amount, $3 billion will be dished out by IDA while $1.5 billion will be funneled by IBRD.
At the same time, the International Financial Corporation (IFC) will provide $1 billion in investments. Out of this amount, MIGA is expected to guarantee $500 million.
World Bank’s statement comes days after the International Monetary Fund approved a $142.8 billion loan for Kenya.
In line with the deal, Kenya will have immediate access to Ksh103.8 billion (USD 682.3 million).
The amount, the World Bank said, will help Kenya navigate its liquidity challenges and service its Eurobond Loans.
The International Monetary Fund (IMF) offices in Washington, US.