Kenya to get $750 million World Bank loan in two weeks

The Central Bank of Kenya headquarters in Nairobi. 

Photo credit: File | Nation Media Group

Kenya will in the next two weeks receive a loan of $750 million from the World Bank that was approved in 2019, the country's central bank governor Patrick Njoroge said on Thursday. The funds will be used to support the budget as the government scrambles to secure cash from abroad to fill deficit gaps.

In May 2019, the World Bank approved the $750 million credit from International Development Association, the World Bank arm that helps the world's poorest countries to support reforms in agriculture, housing, digital technology and fiscal management. 

Dr Njoroge told a virtual press conference that the International Monetary Fund (IMF) is expected to complete the first review of a 38-month financing package under the Extended Fund Facility and Extended Credit Facility arrangements in June, which will lead to the disbursement of $410 million. 

Njoroge noted that the African Development Bank (AfDB) will also provide concessional financing to support Kenya in its Covid-19 response programme.

According to the official, the external financing will help the East African nation reduce its current account deficit, which is expected to stand at 5.2 per cent of the gross domestic product in 2021.