Kenya Gets KSh97bn World Bank Boost to Crack Down on Corruption
Kenya has secured a fresh $750 million (KSh97 billion) loan from the World Bank to support sweeping reforms aimed at tackling corruption, strengthening governance and improving social protection.
The funding will also help the government enhance public financial management and increase transparency across state institutions as part of the Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation (DPO).
According to the World Bank, the reforms are designed to make government institutions more accountable while creating a stable environment that encourages private investment, job creation and long-term economic growth.
The Washington DC-based lender said the programme is also intended to strengthen the regulatory environment needed to attract investors and help lift more Kenyans out of poverty.
“This operation will assist Kenya in reducing leakage, generating fiscal savings, and ensuring that public resources deliver better results and reach the people who need them most by supporting reforms to address conflicts of interest, strengthen procurement systems, improve public financial management, and expand social protection,” Qimiao Fan, the World Bank Division director for Kenya said.
How the KSh97bn package will be shared
The financing package is made up of a $410 million (KSh53 billion) highly concessional loan from the International Development Association (IDA) and a further $340 million (KSh44 billion) loan from the International Bank for Reconstruction and Development (IBRD).
Part of the funding has also been earmarked to improve the livelihoods of refugees and the communities hosting them.
The World Bank said the package is expected to strengthen social protection programmes, improve governance and reinforce public financial management as Kenya continues efforts to reduce poverty.
“Enhancing governance and combating corruption are key components of Kenya’s reform agenda. Kenya has passed a Conflict-of-Interest statute and gazetted the Conflict-of-Interest Regulations 2026, which establish precise guidelines for preventing, identifying, and looking into circumstances in which public servants can use their positions for personal benefit,” it indicated.
The lender also revealed that the government has instructed all Ministries, Departments and Agencies (MDAs) to operate through the Treasury Single Account (TSA), a move expected to reduce idle funds spread across multiple government accounts while improving cash management.
Kenya’s debt continues to rise
The latest funding comes as Kenya’s public debt remains under close scrutiny.
According to the Central Bank of Kenya, public debt has climbed to KSh12.8 trillion following increased government borrowing under President William Ruto’s administration.
Between January and the end of August 2025, the country’s debt rose by KSh1.04 trillion.
It marks the second time in five years that Kenya’s debt has increased by more than KSh1 trillion, after recording a KSh1.38 trillion jump in 2022.
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