Kenya is pressing the World Bank to release a Sh96.7 billion ($750 million) loan sooner than the planned March 2026 timeline, as the government seeks to meet performance targets linked to the funding.
The National Treasury is negotiating for an earlier disbursement after delays that began in the 2024/25 fiscal year, when Kenya missed 11 conditions necessary for the loan to be released.
“We still expect about $750 million from the World Bank’s DPO seven (a type of financing that supports a country's policy and institutional reforms) and we are still concluding discussions on the targets to be met,” Treasury Cabinet Secretary John Mbadi said yesterday.
“The World Bank is talking about March, but we have told them that we may need the money earlier, so we are trying to fast-track the funding.”
Last month, the World Bank outlined seven laws and four policy reforms Kenya must implement before releasing the funds.
Key requirements include amending the Competition Act to regulate firms with dominant market positions, allowing refugees to register for mobile telephony and M-Pesa, and introducing policies to reduce urban traffic congestion, including promoting rail transport.
The lender also seeks the creation of a sovereign sustainability bond policy and full use of e-procurement to reduce corruption in government purchases. Additionally, all government bank accounts must be consolidated at the Central Bank of Kenya rather than spread across commercial banks.
The disbursement was previously frozen after Kenya failed to pass legislation addressing conflicts of interest within the public service. Parliament has since approved the Conflict of Interest Bill and the Social Protection Bill, though the related regulations are still pending publication.
“Outstanding prior actions include further implementation of the Treasury Single Account (TSA) and e-government procurement, and a framework for faster approval of County Government Additional Allocations Bills,” a World Bank spokesperson told this publication.
Other pending requirements include regulations under the Conflict-of-Interest Act, the Social Protection Act, County Licensing (Uniform Procedures Law), amendments to the Competition Act, updated Kenya Information and Communications Regulations, the urban transport policy, amendments to the Forest Conservation and Management Act, and the sovereign sustainability-linked financing framework.
The discussions with the World Bank come as Kenya is also negotiating with the International Monetary Fund for a new funding facility. However, Treasury does not view IMF financing as critical, describing it as an additional source that may be secured in the current financial year.
“Our borrowing plan for the 2025/26 financial year remains on course and we are not worried at all,” said Mbadi.
