A few days after the International Monetary Fund (IMF) agreed to finish disbursing a loan obtained by the previous government, President William Ruto’s administration announced preparations to seek its first World Bank lending.
Prof. Njunguna Ndung’u, Cabinet Secretary in charge of the Treasury, made this statement on Thursday, November 10th, citing the need for a fresh loan due to the economic fluctuation by the extreme drought and famine.
Kenya has announced that it would be applying for a loan from the World Bank for the fifth time in four years, but the exact amount is yet unknown.
Ksh396 billion, or about $1.1 billion, was borrowed from the biggest lending facility in the world in 2019.
The International Monetary Fund (IMF) confirmed on Tuesday, November 8 that it will release Ksh52 billion, or about 6%, of the Ksh255 billion deal signed by former President Uhuru Kenyatta.
The government under Ruto was lauded for fulfilling all loan requirements, including spending cuts, efforts to reduce the wage bill, and plans to maximize earnings from parastatals.
President Ruto’s commitment to reduce reliance on loans was met with reports of an impending World Bank loan application.
On Friday, November 11, Ruto told a crowd of retirees in Nairobi, “It will be painful, but we don’t have an option.”