Kenya wants the World Bank to quicken its disbursement of a Sh96.7 billion ($750 million) loan even as it is caught in a rush to meet key performance targets allowing for the release of the funds.
The National Treasury is hoping to receive the funds --which have been delayed-- earlier than March 2026, the same time when the multilateral lender has indicated it will make the disbursement.
Kenya has failed to meet 11 key conditions to enable the release of new financing from the Washington DC development-focused lender, resulting in the freeze since the 2024/25 fiscal year which ended in June.
“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 on Thursday.
“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 lender listed seven laws and four policy reforms it wants implemented before it can release the funds.
The World Bank wanted Kenya to amend its Competition Act to strengthen regulations that will control the operations of firms with dominant market shares.
It also wants Kenya to allow refugees to register for mobile telephony services and M-Pesa and enact policies that ease urban traffic congestion including pushing city dwellers to use rail transportation.
The lender also wants a policy on the issuance of sovereign sustainability bonds and a full use of e-procurement to curb graft in the purchase of goods and services in government.
All government bank accounts must also be housed at the Central Bank of Kenya (CBK) and instead of being spread across multiple commercial banks.
The World Bank previously froze the disbursement after Kenya failed to pass key legislation to prevent the conflict of interest within the public service.
Kenya has since met the demands after Parliament passed a new Conflict of Interest Bill and the Social Protection Bill but is yet to publish subsequent regulations.
“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 earlier.
“(Other prior actions include) regulations to the Conflict-of-Interest Act, regulations to the Social Protection Act, regulations to the 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 happen amidst similar talks with the International Monetary Fund (IMF) as Kenya seeks to unlock a new funded facility from the fund.
The Treasury does not however deem financing from the IMF as critical, terming it a windfall a deal that is to be reached in the current financial year.
“Our borrowing plan for the 2025/26 financial year remains is on course and we are not worried at all,” said Mr Mbadi.
