The 2023 Spring Meetings of the World Bank Group and the International Monetary Fund, held in Washington, U.S., on April 13, 2023, featured prominently the logo of the World Bank. The bank announced its plans to provide $12 billion in support to Kenya over the next three years, which could be a significant boost for the country’s strained finances. However, the total amount is subject to approval by its executive directors and other factors that may impact its lending capacity.
This financing initiative reflects the World Bank’s commitment to assisting Kenya in achieving upper-middle-income status by 2030 as stated in an official announcement. The $12 billion package will come from various sources, including the International Development Association, International Bank for Reconstruction and Development, International Finance Corporation, and Multilateral Investment Guarantee Agency.
According to World Bank Country Director Keith Hansen, the funding will likely encompass Development Policy Operations and new investments in sectors such as energy, health, transport, and water. Kenya has been grappling with liquidity challenges due to uncertainties about its access to financial markets ahead of a $2 billion Eurobond maturity in June.
In addition to the World Bank’s support, the International Monetary Fund recently reached a staff-level agreement with Kenya and unlocked immediate access to a $682 million tranche of funding while expanding its current lending program by $938 million. In response to recent developments and IMF staff agreement, World Bank aimed to clarify anticipated resources available for Kenya.