The World Bank has committed to providing Kenya with a substantial financial package to assist its development strategy. Over the next three fiscal years, the country’s projects are expected to get an injection of almost $12 billion. A significant amount of this attention is devoted to quick payout activities.
Kenya anticipates receiving a substantial amount of cash from the World Bank Group, contingent upon approval from the World Bank Executive Directors and staying within the institution’s lending capacity limits. The country is on pace to receive approximately $2 billion in concessional finance yearly. The country already has a strong strategic engagement with the World Bank, with a $8.3 billion commitment of which $4.4 billion is available for payment.
Through $1.2 billion in investments, the International Finance Corporation (IFC), a division of the World Bank Group, fortifies this collaboration in Kenya. Furthermore, $424 million in guarantees from the Multilateral Investment Guarantee Agency (MIGA) are provided to these projects in critical industries like energy, transportation, financial services, and tourism.
Kenya aspires to become an upper-middle-income nation by 2030, and this financial help is essential to making that happen. About $4.5 billion of the World Bank Group’s anticipated investment comes from the International Development Association’s (IDA) and the International Bank for Reconstruction and Development’s (IBRD) current commitments.
Kenya’s economic prospects are expected to be further enhanced as a result of an agreement reached on Thursday, November 16, 2023, at the IMF staff level. The country is expected to receive an expanded funding package from the IMF worth $938 million. With this deal, you can access a $682.3 million tranche right away. The IMF Executive Board will review it in January 2024.
International financial institutions’ coordinated commitment demonstrates how much they believe in Kenya’s capacity for expansion and long-term development.