World Bank Approves Ksh97 Billion Financing Package to Support Kenya’s Governance and Anti-Corruption Reforms
The funding, announced by the World Bank on Tuesday, June 30, is expected to support the government’s efforts to improve accountability in public institutions, combat corruption and create a more predictable business environment capable of attracting private investment and generating employment opportunities.
The approved package comprises Ksh44 billion from the International Bank for Reconstruction and Development (IBRD) and an additional Ksh53 billion in concessional financing from the International Development Association (IDA), bringing the total support to Ksh97 billion.
Beyond governance reforms, the financing also includes targeted interventions to improve the livelihoods of refugees and host communities, reflecting Kenya’s continued role in accommodating displaced populations from neighbouring countries.
“Kenya’s reform to strengthen governance, improve public financial management, and expand social protection for its most vulnerable citizens received World Bank Group support today through a Ksh97 billion Development Policy Operation (DPO),” the World Bank announced.
The institution added that “this will contribute to the country’s efforts to establish the regulatory certainty required to create jobs, attract private investment, and lift people out of poverty.”
The World Bank noted that improved transparency and accountability within government institutions remain critical to creating confidence among investors and ensuring sustainable economic growth.
World Bank Country Director for Kenya, Qimiao Fan, said the reforms would enhance the effectiveness of government expenditure while strengthening the country’s long-term economic prospects.
“By supporting reforms to address conflicts of interest, improve financial management, and expand social protection, this operation will help Kenya reduce leakage and ensure that public resources deliver better results,” Fan said.
He added that “it is also helping establish the foundational, business-enabling environment that is necessary to support higher and more inclusive growth and for the private sector to create jobs.”
As part of the reform programme, the government has also directed all Ministries, Departments and Agencies (MDAs) to transition fully to the Treasury Single Account (TSA) system.
The World Bank believes the move will significantly reduce idle public funds held across multiple government accounts while improving oversight of public finances.
In addition, the lender welcomed Kenya’s commitment to accelerating the rollout of electronic government procurement systems, a reform expected to make public tenders more transparent, competitive and easier to audit by reducing human interaction during procurement processes.
The financing represents the successful conclusion of negotiations that began in November 2024, when Kenya first sought the facility to support governance reforms.
However, approval was delayed after the country failed to satisfy several governance conditions required by the lender.
Among the outstanding requirements was the enactment of anti-corruption legislation, particularly the Conflict of Interest Bill, which Parliament took several months to pass. Kenya was also required to demonstrate progress in automating government procurement systems to minimise opportunities for collusion and misuse of public resources.
With those reforms now in place, the World Bank’s approval is expected to provide fresh momentum for Kenya’s governance agenda while supporting broader economic recovery efforts.
Analysts say the funding could strengthen investor confidence, improve the management of public resources and reinforce ongoing reforms aimed at promoting accountability, reducing corruption and creating a more conducive environment for private sector-led economic growth across the country.
World Bank Approves Ksh97 Billion Financing Package to Support Kenya’s Governance and Anti-Corruption Reforms
