Kenya eyes a third more borrowing from World Bank to $1 billion

NAIROBI (Reuters) – Kenya and the World Bank have increased the amount under discussion for a potential budget support loan this fiscal year by a third to $1 billion, a document posted on the bank’s website showed.

Kenya’s government had earlier indicated they were in talks for an amount of $750 million, but it has since been bumped up, the document showed.

Neither the government, nor the World Bank, responded to requests for comment.

The loan still requires the approval of the bank’s board. It is expected to make a decision before the end of Kenya’s current financial year on June 30.

The lending instrument is a Development Policy Operations loan, which is tied to a pre-agreed policy area.

Kenya qualified for that type of financing in 2019 and it has since received four such loans, the last one in March.

The East African economy is grappling with many challenges, including a heavy debt load, lack of fiscal space, drought and a weaker currency.

(Reporting by Duncan Miriri;Editing by Kirsten Donovan)