World Bank Approves Sh81 Billion Loan to Support Kenya’s COVID-19 Recovery
The World Bank has approved a loan of $750 million (Sh81 billion) to Kenya to support the country’s economic recovery from the COVID-19 pandemic.
The international lender said the development policy operation (DPO) loan will help Kenya improve fiscal and debt sustainability through greater transparency and efficiency in government spending.
Some of the funds will be used to develop an electronic procurement system that could yield savings of up to $2.6 billion.
“The financing will support measures to reduce the budget deficit over time, such as by making public spending more efficient, while minimizing debt costs by helping to meet the government’s current financing requirements on concessional terms,” the World Bank said in a statement.
The concessional loan comes at an interest rate of 3.1 percent, a 30-year repayment term, and a five-year grace period.
This is the third time Kenya is tapping the facility after receiving $1 billion in May 2020 and $750 million in 2019.
Requests for DPOs are presented to the World Bank’s board following the implementation of agreed reforms. Kenya agreed to a raft of reforms in the monitoring and evaluation of projects and creating new and transparent auction rules for government securities.
World Bank Country Director for Kenya Keith Hansen said the policy prioritizes reforms in hard-hit sectors, including healthcare, education, and energy.
The World Bank projects Kenya’s economy to grow 4.5 percent in 2021 and 4.7 percent in 2022.
Comments
Wrong move world bank wrong…
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Wrong move world bank wrong move.
This is how Africa in GENERAL is always under seize, promoting African DICTATORS.
All these money will end up in UHURUS,RUTO,Raila and GOONS.
OMG! IMF and World Bank are…
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OMG! IMF and World Bank are tripping over each other in dropping loans to Kenya. First of all, which projects have been done to completion after money has been loaned?
The IMF and World bank know this money will end up in the pockets of our so called Leaders. Why do they do this?
Well said. They know that…
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In reply to OMG! IMF and World Bank are… by SimbaMkali (not verified)
Well said. They know that money will be shared by less than 10 people but they still do it.
All this loans will be…
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All this loans will be diverted to campaigns now that elections are near.How many people have received even the first shot of the vaccine in Kenya .The virus is not going away and as long as the majority are not vaccinated economic recovery will remain just that a myth meanwhile these MPIGs are on a money grabbing spree since without BBI most of them will not be back if common mwanainchi have their say and elections are fair.Good riddance and thanks for burdening the Kenyan population with loans that may never be repaid.We will forever be termed as third world still developing like we are sub human and always dependent on the so called first world or developed countries
I like the terms of the loan…
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I like the terms of the loan, I wish the world bank could advance such loans to individuals like me! Kenya you have received a good deal..
Debt is the modern word for…
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Debt is the modern word for Slavery. Now you know who is creating slavery in Kenya.
The good thing is prophecy which no one vsn stand on its way is also being fulfilled.
There are two stories going on in Kenya. That of Wanjiku and that of Wanjiku's enemies.
Let us watch and see which one takes hold
Debt is a great tool of…
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Debt is a great tool of control. Proverbs: borrower is slave to lender. World Bank is in the lending/chains not helping biz.
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