World Bank set to advance Ksh1.8 trillion ($12 billion) loan to Kenya over the next three years to boost the country’s development aspirations.
The international financial institution said in a statement that Kenya is presently receiving concessional credit of Ksh 304.7 billion ($2 billion) annually.
The International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) have committed Ksh 1.26 trillion ($8.3 billion), of which Ksh670.4 billion ($4.4 billion) is available for payment, according to confirmation from the World Bank.
”MIGA ( Multilateral Investment Guarantee Agency) is actively engaged with $424 million in guarantees covering the energy, transport, financial, fintech, and tourism sectors,” the World Bank pointed out in its statement.
The World Bank reaffirmed its commitment to helping Kenya achieve its goal of being an upper-middle-income nation by 2030.
The Bretton Woods Institution affirmed that IDA and IBRD will provide Ksh685.6 billion ($4.5 billion) to Kenya in accordance with this aim.
”Over the three fiscal years, IDA/IBRD expect to provide an estimated $4.5 billion including fast-disbursing operations” the World Bank stated.
Out of this amount, Ksh 457 billion ($3 billion) will be dished out by IDA while Ksh 228.5 billion ($1.5 billion) will be funneled by IBRD.
At the same time, the International Financial Corporation (IFC) will provide Ksh 152.3 billion ($1 billion) in investments. Out of this amount, MIGA is expected to guarantee Ksh 76 billion ($500 million).
The statement by World Bank comes days after the International Monetary Fund approved a Ksh 142.8 billion loan for Kenya.
In line with the deal, Kenya will have immediate access to Ksh103.8 billion (USD 682.3 million).
The amount, the IMF said, will help Kenya navigate its liquidity challenges and service its Eurobond Loans.