Part of the IDA funding is earmarked for livelihood support to refugees and host communities. The approval of the Second Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation (DPO) is a significant boost for President William Ruto’s administration as it seeks to stabilise public finances, improve investor confidence and create jobs amid mounting economic pressures.
The financing package combines a $340 million (Sh43.9 billion) loan from the International Bank for Reconstruction and Development (IBRD) and $410 million (Sh59.9 billion) in highly concessional financing from the International Development Association (IDA). Part of the IDA funding is earmarked for livelihood support to refugees and host communities.
“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 and reach the people who need them most," said World Bank Division director for Kenya, Qimiao Fan.
“It is also helping establish the foundational, business-enabling environment that is necessary to support higher and more inclusive growth and for the private sector to create jobs”. Kenya first began discussions for the facility in 2024 as part of a broader programme to support fiscal consolidation and governance reforms.
However, disbursement took longer than expected after the World Bank sought stronger commitments on transparency, public resource management and anti-corruption measures. The delay also coincided with heightened scrutiny of Kenya’s public debt, rising borrowing costs and concerns among development partners about governance weaknesses and accountability in the use of public funds.
In announcing the approval, the World Bank said the operation supports Kenya’s reform agenda aimed at making public resources more transparent, efficient and equitable while reducing opportunities for corruption. A key pillar of the programme is strengthening governance and preventing conflicts of interest in public service.
Kenya recently enacted a Conflict-of-Interest law and gazetted the Conflict-of-Interest Regulations, 2026, which establish clearer rules for preventing, detecting, and investigating cases in which public officials may use their positions for private gain.