Kenya will get $750 million from the World Bank

Last updated on March 19th, 2022 at 12:56 pm

Kenya has been accepted for a $750 million loan from the World Bank to help finance its budget until 2022. Kenya would have to make the changes in its public procurement procedures that were meant to cut down on corruption as a condition for getting the money.

According to the World Bank, Kenya should build an electronic platform for public procurement. The idea is to promote transparency and hence reduce corruption. By the end of 2023, the program wants five important ministries, departments, and agencies to use the electronic procurement platform to buy all products and services.

Kenya qualified for the World Bank’s Development Policy Operations in 2020, and the $750 million loan was granted as the second tranche of a credit facility that was issued for the East African country in 2020. Instead of financing specific projects, the DPO program allows the World Bank to lend directly to government treasuries.

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Kenya received the first instalment of the credit facility in June 2021. The annual interest rate on the loan is 3.0 percent.The Kenyan government said early this month that it would spend an additional $956.8 million to increase its budget for 2022. Kenya, like most African countries, has a large debt burden. According to Statista, the country’s gross debt to GDP ratio was 69.7% in 2021.