Barely a month after the International Monetary Fund advanced Ksh79 billion to Kenya, the World Bank has approved $1 billion (KSh106 billion) loan for Kenya.
The World Bank advanced this loan from its Development Program Operations (DPO) kitty.
On Wednesday, he said that the funds will go towards budgetary support
“WB (World Bank) Board gives full approval to Kenya’s DPO of $1 billion. This is the largest DPO we’ve ever received. The fact that 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,” he said in a tweet.
Last year, the World Bank disbursed Ksh80 billion from the Development Program Operations (DPO).
DPO offers direct financial support to government budgetary needs
The $1 billion disbursement by the World Bank is the biggest amount that Kenya has received from the international lender.
Since the Covid-19 outbreak, tax revenues have taken a nosedive forcing Kenyan to rely on her development partners in a bid to meet it expenditure obligations.
Tax projections for 2019 through to March 2020 were off target by around 200 billion which constrained the country’s budget.
The Ksh79 billion by IMF was directly loaned to Kenya through its rapid credit facility (RCF).
