World Bank Conditions Kenya on Passing Key Laws to Access KSh 151.2 Billion Loan

Kenya aims to secure KSh 151.2 billion from the World Bank during the 2026/2027 fiscal year, relying heavily on the lender as its main external financier after the absence of IMF support.

The funds are spread across three financing windows: KSh 94.2 billion through Development Policy Operations (DPO), KSh 52 billion via the Rapid Response Option (RRO), and KSh 5 billion from the Programme-for-Results (PforR) facility.

Conditions for Loan Disbursement

The World Bank has outlined over ten conditions that Kenya must meet to access the next KSh 94.2 billion DPO tranche. These requirements focus on governance, fiscal discipline, market reforms, and climate resilience.

• Whistleblower Protection Act: Kenya must enact legislation to enhance transparency and accountability, aiming to increase public officials' declarations of interest to 85% by 2028.
• Amendment of Companies Act 2015: Updates are needed to align Kenya’s beneficial ownership registry with Financial Action Task Force (FATF) standards to combat money laundering and terrorism financing.
• Public Finance Management Act Revisions: Ensuring in-year budget adjustments stay within parliamentary fiscal limits.
• Payroll and HR Data Consolidation: Integration of payroll and human resources information across all government entities, counties, and state corporations.
• Market and Trade Reforms: Promoting competitive and inclusive product and labor markets.
• Climate and Transport Legislation: Passing a Railways Bill and enacting regulations on urban transport and e-mobility policies.
• Public-Private Partnership Regulations: Publishing rules to regulate unsolicited PPP proposals, addressing concerns from previous controversial bids such as the Adani Group's Jomo Kenyatta International Airport offer.

Recent Disbursements and Funding Context

Kenya received KSh 97 billion from the World Bank’s second DPO tranche in June 2026, following a KSh 155 billion release in June 2024. Earlier attempts to access emergency RRO funds were delayed due to the lack of a clear spending plan.

This comprehensive funding approach underscores the World Bank’s expectation for Kenya to implement wide-ranging reforms across governance, market competitiveness, and climate resilience before unlocking the full loan amount.