The World Bank has revised the amount of loan that was supposed to be advanced to Kenya slashing the total sum by Ksh79 billion.
Kenya was initially set to receive Ksh196 billion, which was later slashed to Ksh156 billion, with an estimated approval date of April 30.
This has now been reduced further to Ksh117 billion, with the World Bank remarking that the new approval date would be subject to board presentation.
The amount will be disbursed through the World Bank's International Development Association (IDA) and is expected to be used for economic development.
Part of the sum will also be concentrated in the trade and investment sectors as Kenya continues to stabilise from global shocks caused by the pandemic and international conflicts.
IDA has identified the National Treasury, under the leadership of Cabinet Secretary Njuguna Ndung’u, as the implementing agency.
“To promote efficiency, equity, and transparency of public finance; foster more competitive and inclusive product and labour markets; and strengthen climate action,” IDA speaks of the loan.
Once disbursed, President William Ruto’s administration is expected to utilise the windfall to generate public expenditure through efficiency measures.
The Kenya Kwanza administration will also use part of the money to strengthen the national social protection system and strengthen independent offices fighting corruption.
With Ruto being commended for his initiatives to protect Kenya and Africa from the adverse effects of climate change, the World Bank expects the Ksh117 billion loan to play a key part in reducing emissions in the transport sector.
The money will also be used to advance Ruto’s vision of planting 15 billion trees by 2032 through supporting exercises to increase national forest cover.
IDA further expects that Kenya will use the funds to ensure that an increasing number of refugees and asylum seekers can access social services.
