Kenya is seeking about $450 million in emergency financing from the World Bank as it moves to shield its economy from mounting external shocks, including the impact of the Iran conflict and the threat of extreme weather later this year.
Kenya is seeking about $450 million in emergency financing from the World Bank to shield its economy from mounting external shocks, including the impact of the conflict in Iran and the threat of extreme weather later this year.
According to people familiar with the discussions, the East African nation is finalising arrangements for a Contingent Emergency Response Project (CERP). This World Bank mechanism allows countries to redirect existing project funds to respond to crises quickly.
The financing is expected to be available by October, although the amount and timeline could still change, Bloomberg reported.
Unlike a conventional loan, the facility reallocates up to 10% of undisbursed funds from a country's existing World Bank projects, enabling governments to respond rapidly to emergencies without taking on additional debt. The arrangement can remain in place for up to six years, with countries able to access the funds multiple times if qualifying emergencies arise.
