Kenya's World Bank funding request

Kenya is seeking up to 151.2 billion shillings from the World Bank Group in the current 2026/2027 fiscal year, according to a debt plan by the National Treasury. The plan, as reported by NTV Kenya, shows the country expects funding from three World Bank support schemes: 94.2 billion shillings from Development Policy Operations (DPO), 52 billion shillings from the Rapid Response Option (RRO), and 5 billion shillings from the Programme-for-Results (PforR) window.

The DPO scheme provides budget support tied to institutional and policy reforms, helping to ease public debt pressures and fiscal deficits by funding governance, accountability, and social protection. The RRO is a fast-disbursing mechanism that allows enrolled countries to use up to 10 percent of their undisbursed project financing balances to address emergency economic shocks, such as disruptions caused by surging fuel and fertiliser prices.

The World Bank is described as Kenya's primary source of external financing in the absence of the International Monetary Fund (IMF).

Domestic borrowing surge

In a separate development, the government more than doubled its domestic borrowing in July, raising Sh138.25 billion from the local market as it began the 2026/27 financial year. According to the National Treasury fiscal outturn, this amount was 105.5 percent higher than the Sh67.26 billion borrowed in July last year.

The Treasury's borrowing plan for the year targets Sh918.1 billion in net domestic financing, against a total fiscal financing requirement of Sh1.02 trillion. The Sh138.25 billion raised in July represents about 15 percent of the full-year domestic financing target.

Public debt service stood at Sh113.75 billion during the month of July. Tax collections increased 13.85 percent year-on-year to Sh195.30 billion in July. Recurrent expenditure stood at Sh142.81 billion during July, while development spending amounted to Sh29.33 billion. Counties received Sh21.4 billion through the equitable share.

Conditions for World Bank funding

To access the next DPO tranche, Kenya must meet specified reform and policy requirements, including strengthening whistleblower protection and improving disclosure of personal interests by public officials. The country is also required to improve beneficial ownership records and revise public financial management rules governing budget adjustments. Other DPO requirements address government payroll data and public-private partnership processes.

In June, the World Bank approved a Ksh97 billion financing package under the Kenya Fiscal Sustainability and Resilient Growth DPO. The Ksh52 billion Rapid Response Option has been identified as a potential source of emergency financing that would provide funding quickly in the face of economic shocks. The Treasury indicated it is working on identifying the expenditure that would be supported by the emergency facility before the financing can be accessed.

The government is also seeking about Ksh58 billion in emergency World Bank financing through a Contingent Emergency Response Project (CERP). The CERP funds are expected to help the government respond to potential economic shocks and adverse weather conditions, including the risk of El Niño rains in October.

Broader fiscal context

The Treasury expects to raise Ksh660.1 billion through external borrowing during the financial year. Kenya's public and publicly guaranteed debt rose to Ksh13.01 trillion by June 2026, from Ksh11.81 trillion a year earlier, a 9.2 percent increase.