World Bank approves Sh158 billion budget support for Kenya

The World Bank on Thursday approved the first of three budget support packages for Kenya worth $1.2 billion, to help the East African country address short-term fiscal pressures and accelerate green policies.

The funding had been agreed amid an improved macroeconomic environment following government efforts to address liquidity pressures, depressed investor confidence and limited capital inflows that had resulted in a rapidly depreciating shilling, the bank said in a statement.

"After tackling the immediate fiscal pressures, the focus can now shift to addressing the country's longer-term challenges," said Keith Hansen, World Bank Country Director for Kenya.

The funding package aims to also create a more competitive labour market and strengthen the country's efforts to combat the impact of climate change, the bank said.