By Edna Mwende,
The World Bank has approved a Ksh.75 billion loan (US$75 billion) to Kenya that will be used to support the country’s Big Four Agenda aimed at boosting economic growth and the country’s ongoing fight against corruption.
“Measures supported by this are expected to benefit ordinary Kenyans through better targeting of agricultural subsidies to reach low income farmers, prosecuting those who engage in fraudulent procurement, increasing availability of affordable housing and improving revenue mobilization,” said Felipe Jaramillo, World Bank Country Director for Kenya in the bank’s approval notice.
The funds will be directly channeled to the treasury’s accounts and it will be the first time in years that the World Bank will wire money directly into the treasury’s account.
Despite financing multiple development projects within the country, the World Bank usually injects the funds directly into the schemes while totally circumventing making remittances to the treasury.
The revelation comes just one week after Kenya’s administration obtained a third Eurobond priced at Ksh. 210 billion to be repaid in two tranches of 7 year and 12 years which will add on to Kenya’s piling debt that sat at Ksh. 5.4 trillion as of May 2019.
Kenya’s borrowing has significantly risen ever since President Uhuru Kenyatta took up office in 2013 with the country’s public debt as a percentage of gross domestic product increasing to 55 percent from 45 percent in the period under review.