Economy

Kenya urges World Bank to speed up loan process

President Uhuru Kenyatta has urged the World Bank to get rid of bureaucratic bottlenecks that slow down the disbursement of its loans.

He argued that Kenya’s capacity to absorb capital inflows had grown since the implementation of several mega projects began. However, he said access to funding from the Bretton Woods institutions still faced needless hurdles.

The World Bank is concerned mainly with long-term development and poverty reduction and provides loans to finance infrastructure projects or reforms.

“We are looking at expanding our railway and power connectivity,” President Kenyatta said. “We are determined to promote education and health sectors. We are, therefore, looking to the World Bank (to help) nurture these projects.”

Kenya this week asked the International Monetary Fund, which collaborates closely with World Bank institutions, for a Sh68 billion credit facility.

READ: Kenya asks IMF for precautionary loan of about Sh68bn.

The IMF’s focus is chiefly on macroeconomic and financial sector issues: Its loans assist countries in continuing to pay for imports, stabilizing their currencies and restoring conditions for strong economic growth.

The Head of State added that Kenya would also welcome additional support from the World Bank to tackle emerging challenges, including terrorism.

He spoke Wednesday morning during a meeting with World Bank Executive Director Louis Larose who called on him at State House, Nairobi.

Dr Larose assured the President of the World Bank’s support, saying the bank was looking at Kenya “with positive lenses”.