Ruto Seeks Ksh92 Billion World Bank Loan

  • A colllage image of President William Ruto and National Treasury CS Njuguna Ndung'u
    A colllage image of President William Ruto and National Treasury CS Njuguna Ndung'u
    File
  • Kenya is seeking a Ksh92 billion ($750 million) budget support loan from the World Bank. 

    According to National Treasury Cabinet Secretary Njuguna Ndung'u, the loan facility will help cover the government's funding needs for the financial year to the end of June 2023. 

    Speaking at the launch of the World Bank's Country Partnership Framework for 2023-28 in Nairobi on Tuesday, December 6, Prof Ndung'u indicated that the government was seeking more cash from the World Bank. 

    "We have been trying to negotiate this to Ksh122.75 billion ($1 billion) but World Bank has been adamant," Ndung'u revealed.

    Treasury CS Njuguna Ndung'u at a past event
    Treasury CS Njuguna Ndung'u at a past event
    Twitter

    Ndung'u had in November indicated that Kenya was in talks with the World Bank for new financing without disclosing the amount involved.

    “The proposed package under discussion with the World Bank aims at promoting sustainable, resilient, and inclusive growth,” Ndung’u reiterated in a speech at the World Bank event.

    Kenya's appeal for the new facility is coming nine months after the lender extended a similar amount to help accelerate ongoing inclusive and resilient recovery from the economic crisis occasioned by the pandemic.

    The Ksh92 billion approved by World Bank in March 2022 was part of the Development Policy Operation intended to help contribute to greater transparency and the battle against graft.

    President William Ruto is on record for looking for alternative and less costly loans after his predecessor Uhuru Kenyatta left the country with high-interest commercial debt. 

    This is considering that interest rates in the domestic debt market range at a high of 14 per cent.

    According to the Treasury CS, the lending instrument under discussion with the World Bank is a Development Policy Operations loan, usually tied to a pre-agreed policy area.

    Kenya qualified for financing in 2019 and has since received four such loans, the last one in March. 

    A Collage of President William Ruto and retired president Uhuru Kenyatta
    A Collage of President William Ruto and retired president Uhuru Kenyatta
    Kenyans.co.ke