Bank loan

Kenya gets KSh 80.9 billion loan from World Bank after Treasury CS Ukur Yatani Read budget Tuko.co.ke


  • Multi-billion loan expected to help country improve its medium-term fiscal sustainability and debt indicators amid COVID-19 pandemic
  • World Bank Kenya Country Director Keith Hansen said the money would be used for reforms in various sectors, including health, education and energy.
  • From the KSh 3.6 trillion budget presented by Yatani, the Kenya Revenue Authority is expected to generate KSh 2. trillion in revenue, leaving a huge hole that needs to be filled.

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Kenya secured a KSh 80.9 billion loan from the World Bank, a day after Cabinet Secretary of the Treasury Ukur Yatani read the 2021/2022 budget.

Trésor CS Ukur Yatani in front of the Parliament buildings. Photo: The National Treasure and Planning.
Source: Twitter

The multibillion-dollar loan is expected to help the country improve its fiscal sustainability and medium-term debt indicators amid the COVID-19 pandemic that has ravaged the economy.

World Bank Kenya Country Director Keith Hansen said the money would be used for reforms in various sectors, including health, education and energy, which have been hit hardest by the pandemic. .

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“In recognition of the gravity of the crisis and the need for a comprehensive response, we support the government’s post-COVID-19 economic recovery strategy, which is designed to mitigate the negative socio-economic effects of the pandemic and accelerate economic recovery and achieve higher and sustained economic growth, ”said Hansen by Citizen TV.

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According to a report by NTV Kenya, the funds would also be used to support policy reforms, including transparency in public procurement and the restructuring of state agencies such as Kenya Power.

From the budget of KSh 3.6 trillion presented by Yatani, the Kenya Revenue Authority is expected to generate KSh 2. trillion in revenue, leaving a huge hole that needs to be filled.

Budget deficit

As part of this, the Treasury plans to borrow more than KSh 900 billion on local and international markets during President Uhuru Kenyatta’s penultimate fiscal year.

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The public treasury plans to borrow at least KSh 2.6 billion per day, which will put pressure on the already crushing public debt.

Kenyans ask IMF

The country’s total debt is expected to rise from KSh7.7 trillion to KSh 8.6 trillion by June 2022, when the 2021/2022 budget is fully implemented.

Kenyans in April asked the International Monetary Fund (IMF) to stop adding to the country’s debt because it might not be able to repay it.

The majority have called on the Washington-based lender to reject Kenya’s future loan applications, saying the huge borrowing will only serve to put the country in debt.

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Source: Tuko



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