CBK Reveals New Dates for Multimillion Loan from World Bank

Jukwaa

🇰🇪 Breaking It Down

Speaking during the post-Monetary Policy Committee (MPC) briefing in Nairobi on Wednesday, June 10, Thugge said negotiations between the government and the World Bank had reached an advanced stage.

“We are in the process of discussing with the World Bank on the DPO, and I hope that the DPO will go to the World Bank Board for discussion fairly shortly,” Thugge said.

The CBK Governor added that no funds had been disbursed so far but expressed optimism that the process would soon be concluded.

📌 What You Need to Know

“There has not been any disbursement regarding the emergency financing. That has not started yet, but there is an ongoing discussion which we hope will be finalised shortly,” he added.

While Thugge did not disclose the amount under discussion, previous government statements indicated that Kenya was seeking approximately Ksh77.5 billion (USD600 million) in emergency support from the World Bank.

The financing was first disclosed in April when the government revealed plans to seek rapid financial assistance to cushion the economy from the effects of the ongoing Middle East conflict, which has disrupted global energy markets and increased fuel costs.

Treasury Cabinet Secretary John Mbadi had then indicated that Kenya could access between Ksh74.9 billion (USD580 million) and Ksh77.5 billion (USD600 million) through the World Bank's emergency response facility if the request is approved.

Kenya has been identified as one of the countries most exposed to global oil price shocks due to its heavy reliance on imported petroleum products from Gulf countries, whose supplies have been affected by the conflict.

The latest update comes a day after the Central Bank retained its benchmark lending rate at 8.75 per cent for the third consecutive meeting, citing uncertainty surrounding global oil prices and the economic impact of the Middle East crisis.

📰 Source: Kenyans.co.ke

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