The World Bank has approved the Ksh75 billion shilling loan to Kenya for budgetary support.
This comes a few weeks after the National Treasury secured a Ksh210 billion shilling Eurobond meant for infrastructural support and settlement of another Eurobond worth Ksh75 billion shillings maturing soon.
This is the first time in more than a decade that Kenya went seeking a loan from the World Bank deposited directly into the National Treasury’s account.
“Measures supported by this operation are expected to benefit ordinary Kenyans through better targeting of agricultural subsidies to reach low-income farmers, prosecuting those who engage in fraudulent procurement, increasing the availability of affordable housing, and improving revenue mobilization,” said the World Bank.
The lender noted that the loan will help support the government’s digitisation programs to improve service delivery to citizens.
In a statement on Wednesday, the World Bank said it has lend the money to support the government’s Big Four agenda.
“Reforms supported by the facility include better targeting of subsidies for agricultural inputs to reach the intended beneficiaries (using e-vouchers and biometric digital identification); reducing inefficiencies and leakages in the procurement and marketing of fertiliser; and establishing a warehouse receipt system and a commodities exchange to help farmers get easier access to credit and to reduce post-harvest losses,” the World Bank said in a statement.
“The facility will enhance service delivery by the government to its citizens and reduce the need for face-to-face interactions and corruption opportunities, ” the statement read in part.
The government requested for the loan in March.
The country’s debt has hit Ksh.5.5 trillion, which represents a debt service ratio of 33.4% instead of the recommended global average of 30 per cent.