THE World Bank declared its plan to extend substantial financial backing to Kenya, aiming to provide $12bn over the coming three years. This announcement, made in Nairobi, emphasises the World Bank’s dedication to aiding Kenya’s aspirations to attain upper-middle-income status by 2030.
Highlighting their robust partnership, the World Bank stressed its pivotal role as Kenya’s primary development finance provider. Currently, Kenya accesses nearly $2bn annually in concessional financing from the World Bank. ‘Kenya is now accessing about $2bn in concessional financing each year,’ it said in a statement on Monday.
The financial commitment entails a significant allocation from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD), amounting to $8.3bn. Of this sum, $4.4bn is available for immediate disbursement.
The International Finance Corporation (IFC) also plays a pivotal role, with an investment portfolio amounting to $1.2bn. Additionally, the Multilateral Investment Guarantee Agency (MIGA) is actively involved, providing guarantees totalling $424 million across vital sectors like energy, transport, finance, fintech, and tourism.
The World Bank delineated the breakdown of the funds: an estimated $4.5bn from IDA and IBRD, including swift-disbursing operations, with $3bn expected from IDA and $1.5bn from IBRD. Simultaneously, the IFC aims to contribute about $1bn in investments, while MIGA’s guarantees could reach around $500 million.
This financial aid, subject to approval by the World Bank Executive Directors for new operations and other pertinent lending capacity factors, stands as a comprehensive financial package aimed at advancing Kenya’s developmental trajectory.