The World Bank has approved a $750 million International Development Association (IDA) credit to support Kenya’s reforms to enhance inclusive growth, accelerate poverty reduction and achieve its Vision 2030 objective of becoming a middle-income industrialized country.
The operation lends support to the government’s “Big Four” agenda which prioritizes agriculture, affordable housing, universal health coverage, and manufacturing.
In agriculture, the Kenya Inclusive Growth and Fiscal Management Development Policy Financing facility will support critical reforms that will enhance competition and market transparency, reduce corruption opportunities, and help Kenyan farmers to achieve higher productivity and to increase their incomes.
By supporting the advancement of digitization through the creation of the national digital ID and pushing for access of internet services to all Kenyans, the facility will enhance service delivery by the government to its citizens, and reduce the need for face-to-face interactions and corruption opportunities.
In housing, the operation will remove major regulatory constraints that developers face, help them lower construction costs, and thereby increase the supply of less-expensive housing units.
The operation will also provide support to the government’s medium-term fiscal consolidation plan by supporting measures to improve revenue mobilization, public expenditure and the prudent management of Kenya’s debt.
It also supports reforms to enhance private sector’s participation in the inclusive growth process.
“Measures supported by this operation are expected to benefit ordinary Kenyans through better targeting of agricultural subsidies to reach low income farmers, prosecuting those who engage in fraudulent procurement practices, increasing availability of affordable housing, and improving revenue mobilization,” said Felipe Jaramillo, World Bank Country Director for Kenya.
JK/abj/APA