World Bank Bribes Kenya With Ksh158 Billion On Climate Change Politics?
- by KIOKO NYAMASYO on Tuesday, 2 April 2024
The Kenyan Shilling is expected to strengthen further after the World Bank approved Ksh158 billion to be disbursed by April 3.
The money which was approved on Tuesday, March 26, under First Kenya Fiscal Sustainability and Resilient Growth is expected to shore up Kenya’s foreign exchange reserves.
This will create a surplus of the United States dollar (USD) hence reducing the strain of Kenya buying foreign currency for international trade.
World Bank will be advancing the USD1.2 billion loan barely three months after Kenya raised USD1.5 billion through Eurobond.
President William Ruto and World Bank Regional Vice President for Eastern and Southern Africa Victoria Kwakwa (in green) alongside other World Bank officials at State House Nairobi on February 7, 2023
The amounts have helped the Kenyan Shilling become the best-performing currency globally.
According to the World Bank, the money advanced to Kenya will be used to develop Kenya economically through trade and investments.
“To promote efficiency, equity, and transparency of public finance; foster more competitive and inclusive product and labour markets; and strengthen climate action,” the World Bank explained the proposed development objective of the loan.
World Bank appreciated President William Ruto’s efforts in climate change initiatives noting that his administration had positioned the country as a leading African voice on climate change.
In particular, the World Bank pointed out how Kenya was an architect of the Nairobi Declaration on climate change (2023).
“To finance Kenya’s climate action, this Development Policy Financing (DPF) supports an improved legal framework for carbon markets and the country’s sovereign green bond framework,” the World Bank detailed.
While awaiting approval for the loan, Kenya is expected to generate public expenditure savings through efficiency measures, strengthen the national social protection system, and reduce corruption.
Kenya is also expected to use the funds to reduce the cost of living which rose due to the pandemic and global factors including unrest in Europe and the Middle East.