President William Ruto has revealed that he will use the Ksh1.8 trillion World Bank advance from the World Bank to improve the lives of Kenyans.
In a statement after hobnobbing with World Bank President Ajay Banga in Germany on Monday, the Head of state specifically indicated that the funds will be used to tame inflation which had seen the cost of living increase.
He further noted that part of the advance, likely to hit the state's bank accounts over a 3-year stretch, will also be used to cover buffers as well as debt vulnerabilities.
"Kenya is indebted to the financial and technical support that the World Bank — and the International Monetary Fund — continue to extend to us. We are especially grateful to the Institutions for their latest assistance — Ksh1.8 trillion and Ksh687 billion, respectively — which will rebuild our buffers, tame inflation and debt vulnerabilities," Ruto explained how he will allocate the joint Ksh2.4 trillion loan.
"This support will help Kenya withstand shocks, accelerate the Bottom-Up Economic Transformation Agenda and advance our long-term, robust and inclusive growth."
The President, who is in France for the G20 Compact with Africa Conference on economic cooperation and promotion of private investment, further noted that he was exploring the use of renewable energy in unlocking jobs for millions of people.
"Africa is ready to create an enabling environment, enact policies and facilitate investments necessary to unlock resources to meet our own climate commitments and contribute meaningfully to decarbonization of the global economy," he added.
"Africa has enough natural resources to underwrite a new chapter in clean energy for the continent and the world."
On Monday, the World Bank announced that it will advance Ksh1.8 trillion ($12 billion) worth of loans to Kenya over a period of three years to boost Ruto government's development agenda.
The World Bank confirmed that commitments from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) now stand at Ksh 1.26 trillion ($8.3 billion), with Ksh670.4 billion ($4.4 billion) available for disbursement.
''MIGA ( Multilateral Investment Guarantee Agency) is actively engaged with $424 million in guarantees covering the energy, transport, financial, fintech, and tourism sectors,'' read the statement in part.
''Over the three fiscal years, IDA/IBRD expect to provide an estimated $4.5 billion, including fast-disbursing operations."