World Bank Approves Sh107 Billion Loan to Kenya
Kenya has obtained a $1 billion (Sh107 billion) loan from the World Bank to boost its budget, the government has said.
The funds will be disbursed from the World Bank’s Development Program Operations (DPO) kitty following approval from the institution’s board.
Treasury Cabinet Secretary Ukur Yatani confirmed the acquisition of the loan through Twitter on Wednesday, May 20th, saying the funds will be directed towards budgetary support.
“World Bank Board gives full approval to Kenya’s DPO of $1 billion. This is the largest DPO we’ve ever received. The fact that World Bank does not provide budget support to countries with weak macro-framework is a testimony of the confidence levels of the bank in our new policy reforms,” Yatani said.
Unlike program loans that come with specific terms and conditions, the new World Bank loan to Kenya features as direct support to government expenditure and is the country’s largest facility from the lender’s DPO. Last year, the World Bank made a similar disbursement of Sh80 billion to the exchequer.
This month, the International Monetary Fund (IMF) approved Sh78.9 billion direct loan to Kenya through its rapid credit facility (RCF). The funds will cater for Kenya’s urgent balance of payments precipitated by the Covid-19 pandemic.
Comments
Kenya should learn from…
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Kenya should learn from Singapore, Malaysia, and South Korea. No Country anywhere has ever developed by saddling itself with debts, especially from the World Bank and the IMF. These Countries were poorer than Kenya in the 1970s, but are now Developed. The only thing that they have in common is that they all refused to saddle themselves with Debt, which is erroneously refered to as 'Aid', from the IMF and World Bank. Countries that accept it in Africa, and Asia, such as the Philippines, never develope, and actually get worse economically.
The day of reckoning is…
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In reply to Kenya should learn from… by Settled Nomad (not verified)
The day of reckoning is coming. When most kenyans hear that the government has borrowed money they do not realise the money is borrowed on their behalf and that they will have to pay back. If that sunk into their thinking they would be outraged.
The saddling happens when a…
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In reply to Kenya should learn from… by Settled Nomad (not verified)
The saddling happens when a Country is headed by Educated "Fools and Tools" lacking in Commonsense.
I don't believe in passing…
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In reply to The saddling happens when a… by GUESIT1 (not verified)
I don't believe in passing blame onto others. Everyone has a role to play, and none is more important than the other. By blaming others, you acknowledge that they have power over you. It is this acknowledgement that actually gives them the power over you. Everyone can control their own Destiny, but you have to believe in yourself first, and acknowledge your role and responsibility in your Destiny.
"H.E MAGUFULI REJECT CORONA…
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"H.E MAGUFULI REJECT CORONA AID like masks, Resume Universities and Sports and Game from 1 June, 2020"
We hope old items from people who died of CORONA- Old clothes from the west and hair from China will not be dumped into Kenya in the name of Aid!!
"......Sh327 Billion Stolen…
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"......Sh327 Billion Stolen by Kenyan Elites Stashed Abroad, Report Says....."
We don't need a loan, we need to repatriate STOLEN money.
@JustMe, Kenyans have short…
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In reply to "......Sh327 Billion Stolen… by JustMe (not verified)
@JustMe, Kenyans have short memories. When Kibaki came to power in 2003, he said that Kenya does not need expensive loans from IMF, World Bank, or other 'Donors', to sustain itself and develope. It just needs to efficiently collect taxes due to the Government, to Finance it's operations. Moi's Kanu said it was unworkable. Kibaki went further, and promised free Primary Education. Kanu said he was out of his mind. Yet Kibaki not only achieved these Goals, he went further, and built Roads and Infrastructure across Kenya, without incurring any debt. Kibaki never went on begging missions outside Kenya. It was the IMF which was begging him to accept their 'Aid'. An in his characteristic style, he did not even respond.
@JustMe, Kenyans have short…
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In reply to "......Sh327 Billion Stolen… by JustMe (not verified)
@JustMe, Kenyans have short memories. When Kibaki came to power in 2003, he said that Kenya does not need expensive loans from IMF, World Bank, or other 'Donors', to sustain itself and develope. It just needs to efficiently collect taxes due to the Government, to Finance it's operations. Moi's Kanu said it was unworkable. Kibaki went further, and promised free Primary Education. Kanu said he was out of his mind. Yet Kibaki not only achieved these Goals, he went further, and built Roads and Infrastructure across Kenya, without incurring any debt. Kibaki never went on begging missions outside Kenya. It was the IMF which was begging him to accept their 'Aid'. And in his characteristic style, he did not even respond. The money is stolen, that is true. But you are still alive. From my understanding, you earn twice by learning from a bad experience, than from a good one.
There is too much strings…
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There is too much strings attached to these loans which makes government decisions making difficult. They are manipulative and controlling loans.
At least it’s enough to pay…
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At least it’s enough to pay our MPs, Senators and MCAs for this fiscal year. Next year we will borrow some more. We need to feed them and make them rich. That’s why we elect them, to pay them. Thanks to us.
Kenyans please watch "Africa…
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Kenyans please watch "Africa continent must wake up!! Ghanaian President Akufu-Addo Rejects All Foreign Aid"
Kenyans wake up!! No more Aid!! No vaccinations!! Every country is suffering from unemployment and cash, food and everything else is scarce. Where are these nations getting enough money for both their unemployed citizens and enough to lend??
Every one needs to help their own nation and continent!!!
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