For the first time in more than a decade, Kenya has reached out to the World Bank for an urgent loan in the form of budget support.
This signals the gravity of the country’s rapidly deteriorating cash-flow situation that is characterised by falling revenues and worsening debt service obligations.
The Nation has learnt that the World Bank’s board is set to make a decision on whether or not to approve Nairobi’s application for a Sh75 billion loan, described as Inclusive Growth and Fiscal Management Development Policy Financing.
The type of credit Kenya has sought is a quick-disbursing facility where money flows straight into the budget to top up the public purse.
Under the regime of former President Mwai Kibaki, Kenya kept away from this type of credit and most of the support from the World Bank came in the form of project support.
The loan application is contained in a letter to the President of the World Bank, Ms Kristalina
