Kenya gets $750m World Bank loan

Kenya gets $750m World Bank loan
Source: BBC
Date: 30-05-2019 Time: 03:05:06:pm

The World Bank has agreed to give Kenya the $750m (£590m; 75bn Kenyan shillings) loan it had requested.

The World Bank says the funds would be used to support vital reforms and curtail corruption in agriculture, and also to boost productivity and income for farmers.

This latest loan comes amid concerns of high debt levels among some Kenyans, the BBC’s Charles Gitonga says.

Kenya raised $2.1bn in London earlier this month. Recently, the East African nation’s citizens took to social media with strong opinions against the move, accusing the government of over-borrowing when the country is broke. 

But some economists say it is normal for an economy like Kenya to take out loans to finance projects and other spending priorities.

Experts have warned that for every $1 raised in tax revenue, the country is spending the equivalent of $1.23 in loan repayment costs. 

The country’s public debt is in excess of $51bn most of which is owed to international lenders and investors. 

Kenyan Finance Minister Henry Rotich said the World Bank money would be used for the Big Four Agenda that seeks to provide affordable healthcare, housing, food security and manufacturing.