The World Bank has authorized the delivery of a Ksh.80.9 billion ($750 million) loan to Kenya to help the government cope with the aftermath of the COVID-19 outbreak.
The loan, which comes from the institution’s Development Policy Operations (DPO), is anticipated to help fund steps to enhance fiscal and debt sustainability metrics in the longer term.
The additional payment is part of the external finance for the fiscal year 2020/21, which ends on June 30.
In exchange, the World Bank wants Kenya to implement reforms, including the creation of an electronic procurement platform for the public sector to improve public expenditure accountability.
The World Bank estimates that the actions agreed upon with Kenya will result in savings of Ksh.280.3 billion ($2.6 billion).
In the next fiscal year, which begins on July 1, Kenya is anticipated to rely on multilateral lenders such as the World Bank and the International Monetary Fund for funding.