World Bank Detains 14 Billion Loan to Kenya

SUMMARY

• The Treasury has disclosed to Parliament that the multilateral lender was yet to disburse the loan that was approved in June.
• The loan hitch could derail Kenya’s target to ship in millions of Covid-19 vaccine shots from Johnson & Johnson and meet its inoculation targets.
• About 3.3 million Kenyans, out of 47 million, have had a first jab and only 1.2 million are fully vaccinated, according to the Ministry of Health.

The World Bank has delayed release of a Sh14.4 billion loan to help Kenya buy Covid-19 vaccines, threatening the government’s plan to inoculate 10 million people by December.

The Treasury has disclosed to Parliament that the multilateral lender was yet to disburse the loan that was approved in June.

The loan hitch could derail Kenya’s target to ship in millions of Covid-19 vaccine shots from Johnson & Johnson and meet its inoculation targets.

About 3.3 million Kenyans, out of 47 million, have had a first jab and only 1.2 million are fully vaccinated, according to the Ministry of Health.

The World Bank says the billions of shillings will be released to the Treasury once Kenya meets certain undisclosed conditions are met.

“As per normal World Bank procedure, new projects or new loans following approval have to comply with certain actions before disbursement can start,” the World Bank said in an email response to the Business Daily.