The World Bank said on Tuesday it approved a $1 billion loan to Kenya to support its budget as East Africa’s economic powerhouse confronts high debts and a weakening currency.
The lending will be done through an instrument called a Development Policy Operations (DPO) loan, which commits Kenya to instituting reforms aimed at creating fiscal space, improving agricultural competitiveness and improving governance.
“The government’s reforms, supported by the DPO, will help to achieve fiscal consolidation, which is essential for reducing the debt burden and related risks, in an equitable and sustainable manner,” Aghassi Mkrtchyan, Senior Economist for the World Bank in Kenya, said in a statement.
Read More : World Bank approves $1 billion loan for Kenya’s development projects