The World Bank approved $1.2 billion in funding for Kenya to support the East African nation’s economic growth amid external shocks. The development policy-operation loan, or DPO, will boost foreign-exchange reserves ahead of a $557-million eurobond repayment due June 24. It’ll also help fund Kenya’s budget as it’s missing tax-revenue targets and provide more support for the shilling, the world’s best-performing currency against the dollar so far this year.
Key reforms include establishment of a Treasury single account, wage-bill consolidation, a modernized social protection system, opening up the ICT sector to more foreign investment and better access to services and jobs for refugees. The funding is a combination of $850 million from the International Bank for Reconstruction and Development, $300 million from the International Development Association and a $50 million grant for refugees.