President William Ruto has defended the Sh1.8 trillion financing pledged by the World Bank and the Sh687 billion loan recently approved by the International Monetary Fund.
Ruto: How new Sh2.5 trillion loans by World Bank and IMF will be used
President Ruto has defended Kenya's new Sh1.8 trillion financing pledged by the World Bank and Sh687 billion IMF loan after meeting World Bank President in Germany
In a statement after meeting World Bank President Ajaypal Singh Banga on Monday, November 20, President Ruto thanked the international lender for the support.
The two met on the sidelines of the G20 Compact with Africa Conference on Economic Cooperation, Promotion of Private Investment held in Berlin, Germany.
“Kenya is indebted to the financial and technical support that the World Bank — and the International Monetary Fund — continue to extend to us. We are especially grateful to the Institutions for their latest assistance — Sh1.8 Trillion and Sh687 Billion, respectively,” President Ruto said.
The head of state added that the financing would help “rebuild our buffers, tame inflation and debt vulnerabilities. This support will help Kenya withstand shocks, accelerate the Bottom-Up Economic Transformation Agenda and advance our long-term, robust and inclusive growth.”
This latest announcement propels the World Bank as Kenya's biggest development finance partner.
In a press release on Monday, November 20, the World Bank said the Sh1.8 trillion ($12 billion) financial package awaits World Bank executive directors' approval and will depend on the bank's lending capacity.
"So, subject to the World Bank Executive Directors approval of new operations, and to factors which may affect the Bank's lending capacity, this implies a total financial package of $12 billion over the three years," the statement read.
The World Bank's historical role as Kenya's largest development finance provider has been pivotal in shaping the nation's economic landscape.
Currently, Kenya accesses approximately $2 billion (Sh305 billion) in concessional financing each year.
Kenya is currently grappling with a heavy debt load and pressure on its foreign currency reserves.
National Assembly Majority Leader Kimani Ichung'wa defended the finance facilities as an expression of confidence by the international lenders.
"This is what sound macroeconomic policies attract. When you do good the world sees it and supports you. Kenya is on the right track and the nay sayers will in due time see it, feel it and share in the progress and prosperity coming of the right leadership," he said.
On the other hand many Kenyans have criticised the financing, saying it leads to more debt and contradicts the government's claims that the previous regime sank Kenya in a debt hole.
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