The World Bank expects to provide Kenya with $12 billion (KES 1.82 trillion) in financing over the next three years to support the country’s development goals, according to a statement released Monday.
The financial package includes an estimated $4.5 billion (KES 683 million) in loans from the World Bank’s International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD).
The IDA and IBRD have committed $8.3 billion to Kenya so far, with $4.4 billion available to disburse, the statement said.
The World Bank Group’s private sector arm, the International Finance Corporation (IFC), also plans to invest around $1 billion in Kenya, while the Multilateral Investment Guarantee Agency (MIGA) could provide $500 million in guarantees.
“Over the three fiscal years (FY24-FY26), IDA/IBRD expect to provide an estimated $4.5 billion including fast-disbursing operations,” the statement said.
Kenya faces economic headwinds from the lingering effects of the COVID-19 pandemic, climate shocks like drought, and global financial uncertainty, the World Bank said. The financing is meant to aid Kenya’s goal of becoming an upper-middle income country by 2030.
“Kenya is now accessing about $2 billion (KES 303 billion) in concessional financing each year,” said the World Bank, which called itself one of Kenya’s “strongest partners.”
The World Bank cautioned that the funding estimate is subject to approval of new operations and factors affecting lending capacity. Kenya will have to continue economic reforms under its existing IMF loan program to access the money.
The announcement comes days after the International Monetary Fund said it would increase financial assistance to Kenya by nearly $1 billion, pending approval, to help the country manage its debt burden.
The IMF said it reached a preliminary agreement with Kenya to augment its $2.34 billion (KES 350 billion) loan program by $938 million (KES 142.8 billlion). The additional funding is critical to help Kenya manage its heavy debt burden and cope with the global economic slowdown, the IMF said.