Kenya has secured Sh97.1 billion ($750 million) from the World Bank to support governance reforms, strengthen public financial management and expand social protection as the government seeks to boost private sector investment and create more jobs.
The funding is being provided under the Second Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation (DPO). It comprises a Sh44 billion ($340 million) loan from the International Bank for Reconstruction and Development (IBRD) and Sh53 billion ($410 million) in concessional financing from the International Development Association (IDA), including support for refugees and host communities.
The World Bank said the programme is designed to help the government improve transparency, curb corruption, enhance the management of public finances and create a stronger environment for private sector-led economic growth.
World Bank Division Director for Kenya Qimiao Fan said the reforms are intended to improve the efficiency and accountability of public spending while strengthening social protection systems.
“By supporting reforms to address conflicts of interest, strengthen procurement systems, improve public financial management and expand social protection, this operation will help Kenya reduce leakage, generate fiscal savings and ensure that public resources deliver better results and reach the people who need them most,” said Fan.
“It is also helping establish the foundational business environment necessary to support higher and more inclusive growth and enable the private sector to create jobs,” he added.
As part of the programme, the government has directed all ministries, departments and agencies to operate through the Treasury Single Account to improve cash management, reduce idle balances and minimise the misuse of public funds.
The financing will also support the expansion of the electronic government procurement system to improve transparency in public procurement, increase competition among suppliers and strengthen oversight of government contracts.
In addition, the programme will support the implementation of the Social Protection (General) Regulations, 2026, and the use of Kenya’s Enhanced Single Registry to improve the identification of beneficiaries, reduce duplication and ensure that social assistance reaches the most vulnerable households.
The World Bank said the reforms are expected to enhance fiscal sustainability, improve service delivery and create a more conducive environment for investment and long-term economic growth.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
