World Bank demands reforms after Sh97.1bn loan approval
The conditions are contained in the World Bank's Development Policy Operation (DPO) programme, which ties disbursement of the funds to policy, legal and institutional reforms aimed at strengthening public finance management, environmental sustainability and economic governance...
✨ Key Highlights
The World Bank has approved a Sh161.8 billion ($1.25 billion) financing package for Kenya, contingent upon the nation implementing a series of critical reforms.
- The loan approval is tied to reforms aimed at strengthening public finance management, environmental sustainability, and economic governance.
- Key reforms demanded by the World Bank include implementing climate-focused policies for sustainable urban transport and forestry, alongside enhancing budget transparency and public participation in financial processes.
- This new financing follows an initial Sh97.1 billion ($750 million) disbursement granted after Kenya met previous reform targets.
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World Bank Approves Sh161.8 Billion Loan to Kenya After Demanding Reforms - July 2026
The World Bank has approved a Sh161.8 billion ($1.25 billion) financing package for Kenya, contingent upon the nation implementing a series of critical reforms. A separate report indicates that Kenya is among developing economies facing shrinking fiscal space due to rising debt and IMF-backed reforms, limiting its ability to fund growth and public services. Another report claims the International Monetary Fund prioritizes debt repayment and austerity over public spending, despite its stated commitment to inclusive growth, particularly affecting countries like Kenya. Deputy President Kithure Kindiki has pledged that proceeds from the sale of government assets will be strictly allocated to infrastructure development, not recurrent expenditure. President William Ruto and Deputy President Kithure Kindiki have defended the government's decision to sell stakes in Safaricom and Kenya Pipeline Company, with proceeds earmarked for financing major infrastructure projects.
