What Kenyans Will Be Required to Do for the New Ksh97 Billion World Bank Loan
The World Bank has confirmed that Kenya must meet several strict conditions before it can access a new loan amounting to about Ksh97.12 billion.
One of the key requirements is the full implementation of a new digital government procurement system known as the Electronic Government Procurement (eGP).
This system was officially launched on Monday by Treasury Cabinet Secretary John Mbadi.
Under this new arrangement, any Kenyan interested in doing business with the government must use the eGP platform.
This includes applying for government tenders, submitting bid bonds, accessing procurement plans, participating in tender evaluations, and tracking budget allocations.
The aim is to improve transparency, accountability, and efficiency in public procurement.
The World Bank emphasized that further funding will only be released once President William Ruto’s administration successfully carries out a series of economic reforms that were agreed upon last year.
One of those reforms is the creation of a single government account held at the Central Bank of Kenya. This will allow better monitoring of public funds and reduce misuse.
Central Bank Governor Kamau Thugge recently confirmed that this plan is already at an advanced stage of implementation.
Another major requirement is the integration of refugees into the local economy. The government has already taken steps toward this by supporting the Ushirika Plan, which was introduced in March.
This plan allows refugees to live and work legally in Kenya, contributing to the country’s development.
Additionally, the World Bank has called on the Kenyan government to expand and strengthen its social assistance programs for vulnerable households.
One of the key programs to be improved is Inua Jamii, which provides support to the poor and elderly.
The lender has also pushed for reforms in business operations. Kenya must streamline and harmonize the process of obtaining business licenses, making it easier for businesses to comply and operate legally.
To ease urban congestion, especially in the capital, Kenya is also expected to develop the Nairobi Commuter Rail Service as part of its commitments.
According to a World Bank spokesperson, the release of the development policy operation funds will only happen once all the agreed reforms are fully implemented.
The funds will also be contingent on Kenya maintaining a stable economic and fiscal environment.
Although the exact amount of funding has not been finalized, reports suggest it could be around Ksh97.12 billion (approximately USD750 million).
In the previous financial year, Kenya received around Ksh155.39 billion (USD1.2 billion) in budgetary support from the World Bank.
At that time, the government committed to tightening its finances and reducing the national debt to 55 percent of the country’s GDP by the year 2029.
Treasury CS John Mbadi has publicly confirmed that Kenya is in advanced talks with the World Bank to secure the Ksh97.12 billion loan.
However, in a surprising move last month, the government dropped a Ksh110.07 billion (USD850 million) borrowing plan that had been under review by the International Monetary Fund (IMF).
This decision raised concerns among economic experts, who warned that Kenya’s debt situation could become even more difficult.
During the launch of the eGP system in Nairobi, Mbadi instructed all Principal Secretaries and accounting officers in Ministries,
Departments, and Agencies (MDAs) to ensure that their offices begin using the new platform immediately.
He emphasized that suppliers and all government departments must adopt the system without delay, signaling that the rollout of the eGP system is no longer optional but mandatory.
These new measures show that the government is under increasing pressure from international lenders to reform how it manages public funds, especially as it continues to rely heavily on borrowing to meet budgetary needs.
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