The World Bank has approved a $750 million budget support loan for Kenya, alongside a sustainability-linked financing facility aimed at easing the country’s debt burden and supporting ongoing economic reforms.
According to the World Bank, the funding is intended to strengthen Kenya’s public finances, reduce its reliance on costly domestic borrowing and provide additional support for government reform programmes.
The budget support package, known as a Development Policy Operation (DPO), includes a $340 million loan from the International Bank for Reconstruction and Development (IBRD) and $410 million in concessional financing from the International Development Association (IDA).
This marks the seventh Development Policy Operation approved for Kenya since the programme began in 2018.
Kenya has been grappling with rising public debt and persistent fiscal deficits, placing increasing pressure on government finances and limiting spending flexibility.
In addition to the budget support loan, the World Bank approved a sustainability-linked syndicated financing facility targeting approximately $500 million. The facility is backed by credit enhancements designed to reduce investor risk, lower borrowing costs and help Kenya access more affordable financing.
The sustainability-linked loan is also tied to environmental and development goals, including reducing deforestation and expanding access to electricity in rural communities.
The latest financing package forms part of the World Bank’s broader efforts to support Kenya’s economic stability while encouraging reforms that promote sustainable growth and improve long-term fiscal resilience.
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