The World Bank will lend Kenya’s government $1 billion in budget support, its biggest financing package yet for the East African economy, according to Treasury Secretary Ukur Yatani.
“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,” Yatani said on Twitter.
WB Board gives full approval to Kenya’s DPO of USD 1Billion. This is the largest DPO we’ve ever received. The fact that WB 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.
— Amb Ukur Yatani EGH (@BaloziYatani) May 20, 2020
The lending comes on the heels of a $739 million International Monetary Fund loan announced earlier this month in emergency support. Kenya has confirmed 963 Covid-19 infections.
Kenya has plans to spend 53.7 billion shillings ($503 million) on a stimulus package to support businesses hit by the pandemic, which the Treasury says won’t affect its budget deficit. The financing gap is seen narrowing to 7.3% of gross domestic product in 2020-21 from an estimated 8.2% in the year through June.