World Bank approves $1 billion funding for Kenya budget support

The World Bank has approved a $1 billion loan for Kenya to help it close a gaping budget deficit and tackle the economic shocks from the coronavirus pandemic, both sides said on Wednesday.

The loan, initiated before the health crisis started, is the second-ever such direct lending for the budget from the World Bank after the first was processed last year.

“Its approval is timely, since it will help fill the financing gap generated by the severe, ongoing shock to Kenya’s economy,” the World Bank said in a statement.

The budget deficit has swollen to 8.2% of GDP in the financial year to the end of June, from an initial forecast of under 7%, mainly due to reduced tax collection and lost revenue from VAT and income tax cuts.

Finance Minister Ukur Yatani said the approval was a vote of confidence in the government’s handling of the economy.

“The… WB (World Bank) does not provide budget support to countries with a weak macro framework,” he wrote on Twitter.

The bank did not give the terms of the loan. A senior official at the finance ministry told Reuters in January that the loan would be “fairly priced”.

It comes two weeks after the IMF approved $739 million in emergency financing, a move which has supported the shilling currency KES=.

(Reuters)

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

Buy and read digital replicas of your TRIBUNE titles by subscribing through E-VENDING

Apologise To Nigerians For Denying Links With Chinese Doctors, PDP Tells FG
Peoples Democratic Party (PDP) has condemned the Federal Government over denials and cover-up on the whereabouts and activities of the Chinese medical team who came into the country in April. The party which said such was a betrayal of the public trust by its citizens on the government, the Federal… Read full story

COVID-19: IGP Orders Strict Enforcement Of Inter-State Movement Restriction Orders
The Inspector-General of Police, IGP Mohammed Abubakar Adamu, on Tuesday, ordered strict enforcement of the national curfew and inter-state movement restriction orders emplaced by the Federal Government as part of measures to prevent the spread of the COVID-19 pandemic in the country… Read full story

Buhari Removes TCN MD One Month After He Reportedly Sacked Labour Leader
President Muhammadu Buhari on Tuesday removed Usman Gur Mohammed as the Managing Director of the Transmission Company of Nigeria (TCN) and replaced him with an engineer, Mr Sule Abdulaziz. He was removed about one month after he reportedly sacked a labour leader who was also the General… Read full story

Osinbajo, NCP Mull Healthcare Reforms
Vice President Yemi Osinbajo, on Tuesday, presided over a meeting of the National Council on Privatisation (NCP) to approve a draft legislative instrument for national healthcare reforms. His spokesman, Laolu Akande, informed that the meeting also discussed power sector issues… Read full story

I’m Not Aware Of Plan To Deport 15,000 Nigerian Students From Malaysia, Says Minister
Minister of Foreign Affairs, Mr Geoffrey Onyeama, has said he was not aware of move by the Malaysian government to deport over 15,000 Nigerian students in the country. Responding to question from newsmen on Tuesday at the Presidential Task Force on COVID-19 briefing, the minister, who assured that… Read full story