World Bank to Support Kenya’s Projects with $750m

The World Bank will be doling out $750 million to support Kenya’s developmental projects for the first time in many years.

The East African nation will enjoy the support as loans from the world financial body in terms of multiple development funding programmes, worth billions of dollars.

The loan, which comes under the bank’s Development Policy Operations, is designed to support the government’s policy and institutional reforms and help make economic growth more inclusive.

“We expect that this operation will help to reduce bid rigging in government procurement thereby leading to fiscal savings and more resources for developmental purposes,” the World Bank said.

“Measures supported by this … are expected to benefit ordinary Kenyans through better targeting of agricultural subsidies to reach low income farmers, (and)… increasing availability of affordable housing,” Felipe Jaramillo, World Bank Country Director for Kenya, said.

The World Bank said some of the funds will also go toward helping the creation of a digital national identification system.

Kenya raised $2.1 billion in a sovereign bond this month, but some critics have expressed concerns over the country’s growing debt burden.

There has been a rise in government borrowing since President Uhuru Kenyatta came to power in 2013 – a jump that some politicians and economists say is saddling future generations with too much debt.

Kenya’s public debt as a percentage of gross domestic product (GDP) has increased to 55 per cent from 42 per cent when Kenyatta took over. The government has defended the increased borrowing, saying the country must invest in its infrastructure, including roads and railways.

Typically, World Bank concessional loans have zero or very low interest rates and have repayments periods of 25 to 40 years, with a five- or 10-year grace period. (Reuters/NAN).

Also Read: Boomplay to invest $1m in Kenya