The World Bank is set to grant Kenya KES 129 Billion budget support loan by June 30.
The amount is KES 32 billion increase from the initially stated KES 96.7 billion ($750 million) soft loan which was to help cover its funding needs for the financial year to the end of next June.
The funds, known as a Development Policy Operation (DPO) facility, will offer significant relief at a time when interest rates for loans in dollars are relatively high, and Kenya’s foreign exchange reserves have been decreasing.
The increment in the loan aligns with the statement made by the Treasury Cabinet Secretary, Prof Njuguna Ndung’u, on December 6, 2022. He mentioned that the government was in talks with the Bretton Woods lender to secure a substantial financing package.
During the current International Development Association cycle, the World Bank has lined up additional Development Policy Operation financing of $750.0 million for the current financial year. We have been trying to negotiate that to $1.0 billion but Keith (the World Bank country director) has indicated that this is what is possible at the moment.
Treasury Cabinet Secretary – Njuguna Ndung’u
However, according to documents viewed by the Nation, the terms for the planned DPO were last updated on March 2 and are currently awaiting approval from the board.
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