Kenya is expected to receive about $400 million in emergency financing from the World Bank within six weeks to help the country respond to risks including Ebola, El Niño related disruptions and high energy prices.
The funding will come through the World Bank’s Rapid Response Option, which Kenya sought after the Iran war pushed global oil prices higher and increased pressure on government finances.
A World Bank spokesperson said the lender was helping Kenya finalise a framework to access rapid financing during eligible emergencies, including Middle East conflicts and El Niño.
The funds are expected to support the health sector in dealing with Ebola risks, agriculture and water resources affected by El Niño, and the wider economy facing high energy costs.
Kenya has a World Bank project portfolio worth more than $7 billion, with about $3 billion already disbursed or committed. Emergency funding is normally capped at 10% of a country’s undisbursed lending portfolio, putting Kenya’s potential allocation at around $400 million.
The World Bank board has already approved the projects supporting the emergency facility, while Kenya and the bank finalise the funding agreement.
The financing comes as rising debt repayments continue to limit Kenya’s fiscal space.
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