Kenya is on course to secure a KSh96.9 billion financing package from the World Bank before the close of the current financial year on June 30, following months of delays tied to policy and governance conditions.
The funding had been put on hold as the government worked to implement a series of reforms demanded by the lender, including measures aimed at strengthening public finance management, improving accountability mechanisms, and advancing broader fiscal and governance commitments.
According to reports, the World Bank has since acknowledged progress made by the government in meeting the agreed benchmarks, clearing the way for the release of the funds once the remaining approval processes are completed.
The financing falls under the World Bank’s Development Policy Operations (DPO) programme, which provides budget support to governments undertaking key economic and institutional reforms.
Once released, the funds are expected to flow directly to the National Treasury, helping to finance government operations and support expenditure plans in the upcoming budget cycle.
The loan had remained inaccessible despite earlier approval, with the World Bank maintaining that disbursement would only occur after Kenya satisfied a set of critical policy conditions attached to the facility.
The expected release comes at a crucial time for the government as it seeks additional fiscal space to meet its spending obligations and sustain ongoing economic reforms.
