The World Bank, one of the Bretton Woods institution controlling global economic order is considering extending additional Sh912 billion (6billion US Dollars) in support to Kenya over the next three years pushing its total commitment to Sh1.82 trillion (12billion US Dollars).
This financial burden to struggling Kenyan taxpayers comes in the wake of weakening Kenyan shilling against global and regional currencies and spiraling economic recession in the country.
Also, Kenyans have expressed outrage over rising cost of living and concerns of over taxation by the president William Ruto’s administration.
Through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the multilateral lender expects to provide a total of Sh684billon (4.5billion US Dollars) from 2024 through 2026 as part of its commitment to support Kenya’s ambition to become an upper-middle-income country by 2030.
“IFC will provide roughly 1billion US Dollars in investments and MIGA guarantees can amount to around $500 million.” World Bank said in a statement.
Of the total commitment, IDA assistance will amount to 3billion US Dollars while IBRD assistance will amount to 1.5billion US Dollars. The bank said the additional concessional support will add to already Sh668.8 billion or 4.4billion US Dollars IDA/IBRD assistance that is available for disbursement.
International Finance Corporation which is a member of the World Bank has an investment portfolio of Sh182.4billion (1.2billion US Dollars) while Multilateral Investment Guarantee Agency (MIGA) is also actively engaged with Sh64.4 billion (424million US Dollars) in guarantees covering the energy, transport, financial, fintech, and tourism sectors, the bank said.
The new financial package is however still subject to approval by the World Bank Executive Board.
