The World Bank has pledged a significant financial package to support Kenya's development agenda, with a planned injection of approximately $12 billion earmarked for the country's projects over the next three fiscal years. This commitment includes a substantial portion dedicated to fast-disbursing operations.
Kenya is on track to receive around $2 billion annually in concessional financing and looks forward to the sizable funding from the World Bank Group, which is subject to the approval of the World Bank Executive Directors and within the institution's lending capacity parameters. The nation's strategic partnership with the World Bank is already robust, featuring an $8.3 billion commitment, of which $4.4 billion is ready for disbursement.
The International Finance Corporation (IFC), part of the World Bank Group, strengthens this partnership with investments amounting to $1.2 billion in Kenya. Additionally, the Multilateral Investment Guarantee Agency (MIGA) supports these endeavors with guarantees totaling $424 million across vital sectors such as energy, transport, financial services, and tourism.
Kenya's ambitious goal is to reach upper-middle-income status by 2030, and this financial support plays a crucial role in facilitating the country's ascent. The proposed funding from the World Bank Group will include around $4.5 billion from existing commitments by the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD).
Further bolstering Kenya's economic prospects, following an IMF staff-level agreement on Thursday, November 16, 2023, the country is set to receive an increased financial package of $938 million from the International Monetary Fund (IMF). This package provides immediate access to a tranche worth $682.3 million and awaits a review by the IMF Executive Board scheduled for January 2024.
The concerted effort from international financial institutions underscores their confidence in Kenya’s potential for growth and sustainable development.
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