Kenya has received an additional Ksh85 billion ($750 million) from the World Bank to aid in its economic recovery following the Covid-19 outbreak.
The money, dubbed the Development Policy Operation (DPO) fund, would help the government increase its sustainability through reforms aimed at increasing openness and combating corruption.
“The government’s reforms supported by the DPO help reduce fiscal pressures by making public spending more efficient and transparent, and by reducing the fiscal costs and risks from key state-owned entities,” Alex Sienaert, senior economist for the World Bank, said.
The money, dubbed the Development Policy Operation (DPO) fund, would help the government increase its sustainability through reforms aimed at increasing openness and combating corruption.
The loan proceeds are expected to boost Kenya’s inventory of usable foreign currency, which serves as a crucial buffer for the shilling in the payment of external debt and utilities, in addition to providing financing for budget assistance.
Kenya has already received its fourth DPO loan, bringing the total amount borrowed to Ksh371.8 billion ($3.25).
When compared to commercial loan interest rates, the loan’s total annual interest cost for Kenya is 3%, which is a decent rate.
Kenya is also part of an ongoing program with the International Monetary Fund, in addition to the World Bank (IMF).
By June, the nation is projected to receive Ksh 267.7 billion ($2.34 billion) from the IMF.
