A $1 billion budget support project for Kenya was approved by the World Bank Board of Directors yesterday, helping close a fiscal finance gap while also supporting reforms that support government’s inclusive economic growth agenda, including affordable housing and income support.
“The fact that World Bank does not provide budget support to countries with a weak macro framework is a testimony of the confidence levels of the bank in our new policy reforms,” Yatani said on Twitter.
The loan comes on the back of a loan declared in Emergency Support this month from the International Monetary Fund for $739 million. 963 Covid-19 infections have been confirmed in Kenya. The Treasury says it would not impact its budget deficit by spending 53.7 billion shillings ($503 million) on a relief package to help pandemic-stricken firms. The financial gap decreased from an estimated 8.2 per cent during the year to June to 7.3 per cent of the gross domestic product in 2020-21.
Data Source: The World Bank