Kenya has secured Sh97.1 billion ($750 million) from the World Bank to support governance reforms, strengthen public financial management and expand social protection as part of efforts to boost private sector investment and job creation.
The funding is part of the Second Kenya Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation (DPO) and comprises a Sh44 billion ($340 million) loan from the International Bank for Reconstruction and Development (IBRD) and Sh53 billion ($410 million) in concessional financing from the International Development Association (IDA), including support for refugees and host communities.
According to the World Bank, the programme backs reforms aimed at improving transparency, reducing corruption and making public spending more efficient.
“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,” said World Bank Division Director for Kenya Qimiao Fan.
“It is also helping establish the foundational business environment necessary to support higher and more inclusive growth and enable the private sector to create jobs.”
As part of the reforms, the government has directed all ministries, departments and agencies to operate through the Treasury Single Account to improve cash management, reduce idle balances and limit the misuse of public funds.
The programme also supports the expansion of electronic government procurement to improve transparency, increase competition among suppliers and strengthen oversight of public contracting.
In addition, the financing will support implementation of the Social Protection (General) Regulations, 2026, and the use of Kenya’s Enhanced Single Registry to better identify beneficiaries and reduce duplication in the distribution of social assistance.
