The funding was released after Kenya met key reform conditions on governance, public finance, and social protection.

Nairobi, Kenya (Running Africa) — The World Bank has approved a $750 million budget support loan for Kenya and endorsed a separate $500 million sustainability-linked financing facility, unlocking a combined $1.25 billion in funding after months of delays tied to governance and economic reform requirements.

The $750 million Development Policy Operation (DPO) will be disbursed directly into the Kenyan government’s budget to support ongoing fiscal reforms and strengthen economic resilience. The package includes $340 million from the International Bank for Reconstruction and Development (IBRD) and $410 million in concessional financing from the International Development Association (IDA).

Approval of the funding had been delayed as Kenya worked to implement a series of reforms agreed upon with the World Bank. These included legislation to strengthen conflict-of-interest rules for public officials, the establishment of a framework for issuing sustainability bonds, and updated social protection policies centered on the country’s national beneficiary registry.

The World Bank confirmed that Kenya has now met the required policy conditions, paving the way for the release of the funds.

In addition to the budget support, the lender approved a $500 million sustainability-linked financing facility to reduce Kenya’s borrowing costs through risk-sharing guarantees. The facility will help finance development projects focused on expanding electricity access in rural communities and restoring forest cover as part of the country’s climate and environmental goals.

The latest financing package comes as Kenya continues efforts to manage its rising public debt, implement fiscal reforms, and secure more affordable funding to support economic growth, infrastructure development, and long-term sustainability initiatives.