Kenya Secures Sh138 Billion in Loans from World Bank and Other Countries ¶
On May 31, 2022, Kenya took a significant step in addressing its budget deficit by securing Sh137.93 billion in loans from the World Bank and other countries.
The loans were procured between January and April to help fill the Sh1.4 trillion fiscal deficit in the Sh3.3 trillion budget for the 2020/22 financial year.
According to Treasury documents tabled in Parliament, six of the nine loans were from the World Bank, while the rest were from Germany, Italy, and France.
‘The total value of the nine loans signed is equivalent to Sh137.93 billion,’ said Treasury Cabinet Secretary Ukur Yatani in the documents.
Kenya borrowed Sh2.08 billion from Germany on February 9 to finance the improvement of roads in Western and Sh2.69 billion on March 17 from France to finance the purchase of French goods and services.
Additionally, the government procured Sh60.2 billion from the International Development Association (IDA) – World Bank’s arm for fighting poverty – on March 18, 2022, to support Kenya Power infrastructure investment.
By the end of April, Kenya had received Sh162 billion from external lenders, against the Sh433.1 billion target for the financial year.
