As part of the budgetary support needed for economic recovery from the effects of the Covid-19 pandemic, Kenya expects more than Sh200 billion from international lenders by June.
According to Patrick Njoroge, Governor of the Central Bank of Kenya, the country is expecting loans from the International Monetary Fund, the African Development Bank and the World Bank.
The sum of $750 million (Sh81 billion) is expected from the World Bank as part of a third Development Policy Operation (DPO) programme designed to help the local economy bounce back from the effects of Covid-19.
The 2021 Budget Policy Statement published in March this year shows that Kenya will push for extended DPO support into the next couple of years with Sh74.3 billion and Sh131.1 billion lined up in 2021/22 and 2022/23 fiscal years.
These new loan disbursements are coming regardless of the immense pressure on the National Treasury to cut back on its borrowing that might plunge the country into a debt crisis. Right now, the country’s total public debt stands at Sh7.3 trillion.