Kenya expects to receive a loan of US$750 Million from the World Bank in the next two weeks to support its budget. This disclosure has been made by the Central Bank of Kenya(CBK) Governor Dr Patrick Njoroge.
The cash will fill a huge budget deficit as the Kenya budget cycle ends in June 2021.
Kenya will receive cash from the World Bank’s Development Policy Operations (DPO) for budget support.
Njoroge told the media that the amount of US$750 million would be disbursed over a couple of weeks.
Kenya has been able to access two previous loans from the World Bank in the last two years.
The International Monetary Fund(IMF), which approved funding for Kenya in April amounting to US$ 2.34 billion, is expected to disburse the first tranche of US$ 410 Million once the board has given its approval.
Kenya is also expected to receive more funding from the African Development Bank, assisting the country in closing its current account deficit and boosting its forex reserves.
The Government is also planning to float another dollar bonds worth US$ 1 Billion in June 2021. Treasury intends to seek an extension of the G20 debt suspension initiative as it battles effects on COVID-19 on the economy.