World Bank Approves $750 Million Loan For Kenya Amidst Growing Debt Concerns

Kenya Loan

Months after Henry Rotich, Kenya’s Treasury Cabinet Secretary, wrote to the World Bank requesting an urgent credit in the form of budget support, the global financial institution has granted to Kenya’s Sh75 billion ($750 million) loan request. Further adding up to the nation’s growing debt burden.

In a letter to the bank’s President, Ms. Kristalina Georgieva dated March 13, 2019, Cabinet Secretary Rotich held that the money will be used to finance the Big Four agenda.

Kenya’s World Bank loan application is an exodus from a 10-year practice where the country kept off loans from World Bank, as it sought to persuade itself against the over-dependence on the Bretton Woods institution to funding its budget.

Start Your Business In 30 Days

The Loan Is To Support Critical Reforms And Advance Digitization In The Country.

This week, the lender stated that the loan facility will fund critical reforms that will reduce corruption in agriculture, boost competition and market transparency, and also help Kenyan farmers achieve higher productivity and increase their incomes.

In a statement, the world bank said: “Reforms supported by the facility include better targeting of subsidies for agricultural inputs to reach the intended beneficiaries (using e-vouchers and biometric digital identification); reducing inefficiencies and leakages in the procurement and marketing of fertiliser; and establishing a warehouse receipt system and a commodities exchange to help farmers get easier access to credit and to reduce post-harvest losses.”

The lender further stated that the loan will support the progress of digitization through the creation of the national digital identity and pushing for access of Internet services to all Kenyans.

The facility will enhance service delivery by the government to its citizens and reduce the need for face-to-face interactions and corruption opportunities,” it said.

Kenyans React To The Growing Public Debt Of The Country.

In recent months, Kenyans with growing concerns on the issue have raised agitations over government unquenchable appetite for foreign loans saying the lending were unnecessary and most of the times it ends up being mismanaged or embezzled to the detrimental prosperity of the future generation.

In September 2018, Kenya’s public debt crossed the Sh5.1 trillion mark and the most recent borrowing is likely to push it further than Sh5.5 trillion by close of the year.

It is said by analysts that Kenyans have been sunk into more debt by the global financial institution. They said that the country, amidst growing concern, is neck-deep in debt and may not be able to pay off the debts.

Economic experts have described the loan as Inclusive Growth and Fiscal Management Development Policy Financing. This type of credit, they said, will see the money flow straight into the budget to supplement the public purse.

Entrepreneurship is a lonely journey, let us help you get through it with our services.



Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Business Registration

Most Popular

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Related Posts

Steps to launch a business

10 Essential Steps to Launch a Business in 30 Days

There are steps to most things in life. Sometimes, we struggle when we fail to follow the steps. Starting a business is no different. There are essential steps to launch a business. Starting your own business is an exciting adventure. The idea of turning your passion into profit and being

Benefits of entrepreneurship

The Benefits of Entrepreneurship: Why Start Your Own Business?

In a world driven by innovation and opportunity, the idea of entrepreneurship has never been more enticing. The concept of being your own boss, charting your destiny, and reaping the rewards of your hard work is alluring to many. But what are the concrete benefits of entrepreneurship, and why should

Signs That Show It's Time to Start Your Business

Seven Signs That Show It’s Time to Start Your Business

Embarking on the journey of entrepreneurship is like setting sail on an uncharted sea—full of exciting possibilities and the potential for tremendous challenges. We will be looking at the signs that show it’s time to start your business. For many aspiring entrepreneurs, the decision to start a business is accompanied

Scroll to Top

Join Entrepreneurs Family!

Get access to FREE business insights and funding opportunities daily.

Entrepreneurs Sign Up