The World Bank has approved US$750 million in financing to support Kenya’s governance reforms, strengthen public financial management and expand social protection programmes for vulnerable households.
The financing package comprises US$340 million from the International Bank for Reconstruction and Development (IBRD) and US$410 million from the International Development Association (IDA).
The funding will support Kenya’s reform programme aimed at improving governance, combating corruption, modernising public procurement systems and enhancing the management of public finances.
It also seeks to expand social protection programmes to better support low-income and vulnerable citizens while creating a more transparent and accountable public sector.
World Bank Country Director for Kenya Qimiao Fan said the operation would help reduce leakages of public funds, generate budget savings and ensure government resources are used more effectively.
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He added that the reforms would also improve the business environment, supporting stronger and more inclusive economic growth while encouraging private sector investment and job creation.
The financing comes shortly after the Kenyan government unveiled a budget worth approximately $37.2 billion in June as part of President William Ruto’s economic reform agenda.
The budget prioritises faster economic growth, increased opportunities for young people and micro, small and medium-sized enterprises (MSMEs), stronger social protection programmes, improved climate resilience and higher living standards.
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As part of its governance reforms, Kenya has also enacted a new conflict-of-interest law and introduced regulations aimed at preventing and penalising the misuse of public office.
The new rules strengthen transparency requirements and impose tougher penalties for conflicts of interest, closing legal gaps that previously allowed unethical conduct to go unpunished.
The World Bank said the latest financing is intended to support Kenya’s broader efforts to improve public sector efficiency, strengthen institutions and create conditions for sustainable economic development while protecting vulnerable groups from economic shocks.
