The East Africa nation hopes for an initial disbursement of about $725 million to fund the fiscal year that runs through June.
Kenya Treasury Secretary Ukur Yatani says the loan is in “continuous support of Kenya’s COVID-19 response. The country is also looking at areas of reduced debt vulnerabilities through a revenue-driven fiscal consolidation.
For nearly two years now, Kenya has abandoned expensive commercial debt to cut back on ballooning repayments, while revenue collection has been squeezed by the pandemic.
As part of that strategy, it secured $1 billion in May in the second-ever such direct lending for the budget from the World Bank, after the first was processed last year. That money was on top of a $750 million loan the World Bank doled out to Kenya in 2019. Talks are underway for yet another loan from the World Bank.