Ruto Secures Ksh162 Billion World Bank Loan Days After Meeting World Bank Chief

World Bank Approves 162 billion Financing for Kenya

Kenya has secured a US$1.25 billion, about Ksh161.86 billion, financing package from the World Bank to support governance reforms, strengthen public financial management, expand social protection, and improve the country’s Financial stability.

In a press release dated June 29, the World Bank stated that the package comprises a US$750 million Development Policy Operation (DPO) and an additional US$500 million Sustainability-Linked Loan, bringing the total financing to US$1.25 billion.

The bank added that the funding is intended to support Kenya’s reform agenda by promoting transparency, reducing corruption, improving the management of public resources, and creating a more conducive environment for private investment and job creation.

Kenya Secures US$1.25 Billion World Bank Financing to Back Public Sector Reforms

According to the World Bank, the US$750 million Development Policy Operation is made up of US$410 million in highly concessional financing from the International Development Association (IDA), while the US$340 million is from the International Bank for Reconstruction and Development (IBRD).

In addition, the bank explained that the financing forms part of Kenya’s 2025/26 borrowing plan and supports the country’s Fiscal Sustainability and Resilient Growth Development Policy Operation.

The package is further complemented by a US$500 million Sustainability-Linked Loan, which is expected to help strengthen Kenya’s external financing position.

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According to the financing update, proceeds from the US$500 million Sustainability-Linked Loan will be used to retire expensive existing debt while also providing budget support.

Under the agreement, Kenya has committed to linking the loan’s borrowing costs to sustainability targets, including reducing deforestation and expanding access to rural energy.

The World Bank also noted that the recent publication of Kenya’s Sustainability-Linked Financing Framework by the National Treasury may have been part of the requirements preceding the approval of the facility.

Financing Focuses on Governance and Anti-Corruption Reforms

The bank said a key pillar of the financing is supporting reforms aimed at strengthening governance and tackling corruption.

As part of the reform programme, Kenya has enacted a Conflict-of-Interest law and gazetted the Conflict-of-Interest Regulations, 2026, which establish clearer rules to prevent, detect, and investigate situations where public officials could use their positions for personal gain.

The regulations also introduce stricter disclosure requirements and stronger penalties to close loopholes that have historically enabled conflicts of interest to go unaddressed.

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World Bank Division Director for Kenya, Qimiao Fan, said the reforms are expected to reduce the leakage of public funds while improving service delivery.

“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,” Qimiao Fan said.

He added that the reforms would also help establish a stronger business environment capable of attracting investment, supporting private sector growth, and creating jobs.

Beyond governance reforms, the programme also seeks to improve the management of public finances.

The Government has directed all Ministries, Departments, and Agencies to operate through the Treasury Single Account, a move expected to reduce idle cash held across multiple government accounts, limit costly overdrafts, and improve oversight of public funds.

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