Kenya’s journey towards achieving an upper-middle-income status by 2030 might receive a substantial impetus, with the World Bank considering a significant financial boost. The global financial institution is mulling over a proposal to extend an additional $6 billion in aid to Kenya, which could propel the country’s total assistance to a staggering $12 billion in the coming three years.
This potential influx of support comes through the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), key constituents of the World Bank group. Between 2024 and 2026, the World Bank aims to channel approximately $4.5 billion to Kenya. This move aligns with its commitment to aid Kenya’s ambitious socio-economic growth plans.
According to recent statements from the bank, the investment arm of the World Bank, the International Finance Corporation (IFC), is expected to contribute about $1 billion. Additionally, the Multilateral Investment Guarantee Agency (MIGA), another World Bank affiliate, is set to offer guarantees nearing $500 million.
Breaking down the planned financial support, the IDA’s contribution is pegged at $3 billion, whereas the IBRD is expected to extend aid amounting to $1.5 billion. This additional funding is set to supplement the existing $4.4 billion (Ksh 668.8 billion) IDA/IBRD assistance already earmarked for Kenya.
The International Finance Corporation already boasts a robust investment portfolio in Kenya, valued at approximately $1.2 billion. Similarly, MIGA is actively engaged in the Kenyan market, with guarantees totaling around $424 million across diverse sectors including energy, transport, financial services, fintech, and tourism.
However, it’s important to note that this new financial package is contingent upon approval from the World Bank Executive Board. The decision is eagerly anticipated, as it holds significant implications for Kenya’s economic trajectory and its goals of achieving middle-income status within this decade.
