The World Bank is set to disburse a long-delayed Ksh96.9 billion loan to Kenya before the end of the current financial year on June 30.

🇰🇪 Breaking It Down

The disbursement follows progress on key policy reforms that Kenya had to meet before the loan could be unlocked.

According to reports by Bloomberg , the delay was linked to Kenya’s pace in implementing agreed governance and fiscal reform measures, including adjustments in public financial management, accountability systems, and broader economic policy commitments tied to the financing package.

The report further indicates that the World Bank is now said to be satisfied that sufficient progress has been made, paving the way for the disbursement before the end of June, subject to final procedural approvals.

📌 What You Need to Know

Kenya was offered the loan under the development policy operations (DPO) programme, which was intended to flow directly into the National Treasury to support salaries and day-to-day government operations in the next budget.

However, the World Bank had stated that the money would be released only if K enya met three key regulatory requirements .

Among the requirements was for Kenya to outline the regulations defining how beneficiaries of monthly stipends for orphans, the elderly and those with disability are identified.

Another key regulation the global bank had set is the rules governing the issuance of sustainability-linked bonds (SLBs), as well as the legal backing for a policy compelling Kenya to raise its national tree cover to at least 30 per cent by 2032 under the Forest Conservation and Management Act.

The conditions have all been met, with the National Treasury now expected to receive the funds and include them in its 2026/27 budget that is set to be in operation from July 1.

The funding is expected to provide critical budgetary relief for the government, helping to reduce reliance on domestic borrowing and easing pressure on Treasury operations.

📰 Source: Kenyans.co.ke