World Bank Approves $750 Million to Support Kenya’s Governance and Fiscal Reforms

July 1, 2026
By Mintesinot Nigussie

The World Bank Group has approved 750 million US dollars in financing to support Kenya’s efforts to strengthen governance, improve public financial management and expand social protection programmes for vulnerable citizens.

The financing, provided through the Second Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation, supports a government-led reform agenda aimed at improving transparency in public resource management, reducing corruption risks and creating conditions for private sector-led growth.

The package includes a 340 million US dollars loan from the International Bank for Reconstruction and Development and 410 million US dollars in concessional financing from the International Development Association, including support for livelihoods programmes targeting refugees and host communities.

A key focus of the programme is strengthening governance through measures designed to prevent conflicts of interest and improve accountability among public officials. Kenya has enacted a Conflict-of-Interest law and issued related regulations that establish requirements for disclosure, investigation and enforcement where public officials may benefit privately from their positions.

The reforms also include measures to improve government financial management. Kenya has directed ministries, departments and agencies to use the Treasury Single Account, a system intended to consolidate government cash holdings, reduce idle balances and improve oversight of public funds.

The programme will also support the expansion of electronic government procurement, which aims to make public contracting more transparent, competitive and easier to audit by reducing reliance on manual processes.

The World Bank said the operation would help Kenya improve the efficiency of public spending, reduce financial leakages and strengthen the delivery of public services.

“By supporting reforms to address conflicts of interest, strengthen procurement systems, improve public financial management, and expand social protection, this operation will help Kenya reduce leakage, generate fiscal savings, and ensure that public resources deliver better results,” said Qimiao Fan, World Bank Division Director for Kenya.

The financing also supports Kenya’s social protection framework through the Social Protection (General) Regulations 2026 and the use of the Enhanced Single Registry, which is designed to improve identification of beneficiaries and reduce duplication in assistance programmes.

The World Bank said maintaining reform momentum would be important for Kenya’s fiscal and debt sustainability as the country seeks to strengthen economic resilience and support inclusive growth.

Source: FSX Business News