dyton mupawaenda
The World Bank approved US$1,2 billion in funding for Kenya to support the East African nation’s economic growth amid external shocks.
The development policy-operation loan, or DPO, will boost foreign-exchange reserves ahead of a US$557-million eurobond repayment due June 24.
It’ll also help fund Kenya’s budget as it’s missing tax-revenue targets and provide more support for the shilling, the world’s best-performing currency against the dollar so far this year.
The fresh funding, “the first in a series of three, has been prepared under an improved macroeconomic environment following government action to address the challenges that had overshadowed the economy, including tight liquidity pressures, depressed investor confidence and limited capital inflows that had resulted in a rapidly depreciating shilling,” the World Bank said last week.
Key reforms include establishment of a Treasury single account, wage-bill consolidation, a modernized social protection system, opening up the ICT sector to more foreign investment and better access to services and jobs for refugees.
The funding is a combination of US$850 million from the International Bank for Reconstruction and Development, US$300 million from the International Development Association and a US$50 million grant for refugees.
It will be the sixth time Kenya is tapping the World Bank facility, with the nation having borrowed US$4,25 billion since 2019. – Bloomberg
Online Reporter
Bongani Ndlovu