Kenya granted $1 billion (Ksh106.7 billion) loan from World Bank


 Kenya granted $1 billion (Ksh106.7 billion) loan from World Bank

National Treasury Cabinet Secretay Ukur Yatani on Wednesday, May 20, announced that Kenya had been granted a $1 billion (Ksh106.7 billion) loan from World Bank.

The loan became the largest Discounted Payoff (DPO) that World Bank has granted the country.

“World Bank Board gives full approval to Kenya’s DPO of USD 1Billion. This is the largest DPO we’ve ever received.

“The fact that the World Bank does not provide budget support to countries with weak macro framework is a testimony of the confidence levels of the bank in our new policy reforms,” read a statement published by Yatani.

This comes 14 days after the International Monetary Fund approved the disbursement of Ksh. 78 billion that was drawn under the Rapid Credit Facility to support the response to the Covid-19 pandemic.

Back in October 2019, World Bank released a report warning Kenya that it is drifting towards debt distress, owing to the government’s borrowing of expensive loans.

On Tuesday, May 19, Germany, the Netherlands, Belgium, France, Sweden and Denmark committed to improving food security in Kenya by offering Ksh 2.4 billion (EUR 21 million) during the pandemic.

Yatani noted that the planned spending of Ksh. 53.7 billion on a stimulus package to support businesses hit by the pandemic will not affect the budget deficit.

The CS on Tuesday, May 19 presided over the launch of a report on Socio-Economic Impact of Covid-19 on Households survey.

The report by Kenya National Bureau of Statistics (KNBS) revealed 30.5% of households were unable to pay their rent in the month of April.

A break-down of expenditure on Wednesday, April 29 donated by the World Bank to Kenya for the fight against Covid-19 sparked an uproar among Kenyans .

The massive amounts spent on airtime and snacks, Ksh 6 million and Ksh10 million respectively, quickly raised eyebrows.


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