The World Bank Group announced Thursday, May 30, that it had approved $1.2 billion in financing for Kenya to help the country address short-term budgetary pressures and stimulate growth. greener and inclusive growth
This transaction is in addition to another $850 million loan from the International Bank for Reconstruction and Development (IBRD), a $100 million concessional loan from the International Development Association (IDA) and a grant of $50 million for refugees.
This financing raised by Nairobi will make it possible to increase the country’s foreign exchange reserves before the repayment deadline for 57 million dollars of Eurobonds which will take place on June 24. Above all, they will help to ease the pressure on the state budget, which is unable to achieve its objectives in terms of mobilizing tax revenue, and to support the national currency, the shilling, which has been battered for several weeks on the foreign exchange market. .
The support from the World Bank will also serve as a lever for the implementation of a package of reforms initiated by the government. These include, among other things, the establishment of a single Treasury account, the consolidation of the payroll, the deployment of the social protection system and the improvement of access to services and jobs for very numerous refugees in the country.
Money from the World Bank is also welcome to support Kenya’s ambitions in the areas of ecological transport, increasing forest cover and optimizing financing for the fight against climate change. This country is in fact one of the most advanced in terms of renewable energies on the continent.
By AJ.SEditorial Committee
