The World Bank has outlined three regulatory conditions Kenya must meet by June 30 to secure a Ksh96.9 billion budget support loan. The funds will support salaries and daily government operations. The requirements follow Kenya's request for aid amid fuel supply disruptions and external shocks from the Middle East conflict.
The World Bank has offered Kenya a Ksh96.9 billion loan under its development policy operations (DPO) programme, which would flow directly to the National Treasury for salaries and routine government operations.
The three conditions include regulations on identifying beneficiaries for monthly stipends to orphans, the elderly, and persons with disabilities; rules for issuing sustainability-linked bonds (SLBs); and legal support for a policy to increase national tree cover to 30 per cent by 2032 under the Forest Conservation and Management Act.
Treasury officials state two conditions will be met by end of May, with parliament set to handle forest law amendments by May 5. Once enacted, an International Monetary Fund clearance letter will trigger disbursement to the government's consolidated account.
This comes as Kenya prepares a Ksh4.738 trillion budget with a Ksh2.878 trillion national ceiling and a Ksh1.22 trillion deficit, or 6.4 per cent of GDP, amid domestic borrowing approaching Ksh1 trillion.