The Board is yet to approve the date on which the money will be disbursed to the National Treasury account.
In December 2022, during the launch of the World Bank's Country Partnership Framework for 2023-28 in Nairobi, Treasury Cabinet Secretary Njuguna Ndung'u the government was negotiating for $1 million after receiving $750 million the same year.
"We have been trying to negotiate this to $1 billion but World Bank has been adamant," Ndung'u said.
The $750 million approved by World Bank in March was part of the Development Policy Operation that intended to help strengthen fiscal sustainability through reforms that contribute to greater transparency and the fight against corruption.
The DPO is the second in a two-part series of development operations initiated in 2020 that provides low-cost budget financing along with support to key policy and institutional reforms.
The DPO organises the multi-sector reforms into three pillars: fiscal and debt reforms, electricity sector and public-private partnership reforms and strengthening the governance framework of Kenya’s natural and human capital.
In 2021, Kenya received a Sh80.9 billion ($750 million) loan from the World Bank to support its budget and help the East African economy recover from the effects of the Covid-19 pandemic.
The government has been pushing hard to secure low-cost foreign funding at the time interest rates in the domestic debt market are ranging at a high of 14 per cent.
