World Bank to disburse KSh96.9B loan to Kenya by June 30

The World Bank will release a KSh96.9 billion loan to Kenya before the end of June after the country met required reform conditions.

The disbursement comes under the development policy operations programme and will go directly to the National Treasury. It is intended to support government salaries and operations in the 2026/27 budget starting July 1.

Kenya completed three regulatory requirements set by the lender. These cover identification of stipend beneficiaries for orphans, the elderly and people with disabilities, rules for sustainability-linked bonds, and legal measures to increase national tree cover to 30 percent by 2032.

The funds are expected to ease pressure on domestic borrowing. The announcement follows recent statements from the Central Bank of Kenya about progress on the financing.

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Illustration of a Kenyan family receiving remittances from the United States, highlighting the Ksh931.8 billion inflows reported by KNBS.
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KNBS report reveals Ksh931.8 billion in remittances to Kenya

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The Kenya National Bureau of Statistics released its 2025 Remittances Household Survey Report on Tuesday showing total inflows of Ksh931.8 billion from June 2024 to May 2025. The United States accounted for 43.5 per cent of the total. Most funds went to household consumption rather than investment.

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.

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The National Treasury is considering a KSh145.6 billion Eurobond issuance to help finance Kenya's 2026/27 budget.

Ethiopia's Ministry of Finance announced on May 27, 2026, that talks with private bondholders over restructuring a $1 billion eurobond have ended without agreement after the Ad Hoc Committee rejected a revised proposal.

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Finance Minister Ahmed Shide reported to parliament that the 1.93 trillion birr federal budget is under pressure from delayed external aid. He addressed lawmakers on May 4, 2026, noting that domestic borrowing has risen faster than planned. The session took place without private media present.

Fuliza loans from Safaricom have exceeded one trillion shillings for the first time in the year ending March 2026.

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Kenya's National Treasury has formally received Ksh 103.45 billion from the partial sale of Kenya Pipeline Company (KPC) shares. The Privatisation Authority of Kenya's board handed over the funds, marking a key milestone in the country's privatisation programme. Treasury Cabinet Secretary John Mbadi highlighted the government's commitment to transparency and accountability.

 

 

 

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