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Elder Lister
www.the-star.co.ke

Kenya set for Sh1.8 trillion from World Bank

The facility is, however, subject to approval by the Group’s executive directors.
www.the-star.co.ke www.the-star.co.ke


Kenya is set to receive financing of up to $12 billion (Sh1.8 trillion) from the World Bank Group over the next three years.
The facility is, however, subject to approval by the Group’s executive directors.

In a statement Monday, the group said Kenya currently accesses about $2 billion (Sh300 billion) in concessional financing each year.

The International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD) commitments stand at $8.3 billion (Sh1.24 trillion), with $4.4 (Sh660 billion) available for disbursement.

IDA and IBRD are part of the five institutions of the Bank.

They are expected to provide an estimated $4.5 billion (Sh675 billion) including fast-disbursing operations.

Out of this amount, $3 billion (Sh450 billion) will be from IDA while $1.5 billion (Sh225 billion) is from IBRD.

“International Finance Corporation’s (IFC) investment portfolio is $1.2 billion (Sh180 billion),” reads the statement in part.

Multilateral Investment Guarantee Agency (MIGA), it adds, is actively engaged with $424 million (Sh63.6 billion) in guarantees covering the energy, transport, financial, fintech, and tourism sectors.

The disbursement of the funds, the bank says will depend on directors’ approval of new operations, “and to factors which may affect the Bank's lending capacity”.
 
Bruh, we know IMF and world bank are pests coz their loans comes with unpleasant preconditions, but this is good news. I think we are not at risk of default anymore.
 
algorithm said:
Yaani in just 1yr he has borrowed 1.5+1.8=2.3 trillion which is many times what uhuru borrowed.
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Best way to look at it is in terms of dollars. From Jan to now, Ksh has lost 26% of its value. For a $2B(ksh. 174b)loan uhuru secured in 2014/15, you'll need more than ksh 300B to repay it.
algorithm said:
Upus of borrowing from fuliza to pay mshwari.
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Sjui ka ni ignorance humsumbua ama ni nini. These IMF loans are long term with low interest rates. The moron that is Uhuru used to borrow commercial loans locally for recurrent expenditure. It's actually a crime to do so. In a serious country, he should be in jail somewhere
 
Othello said:
Sjui ka ni ignorance humsumbua ama ni nini. These IMF loans are long term with low interest rates.
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The Uhuru chinese loans were long term very low interest loans, better than imf. Also uhuru was borrowing locally via treasury bills/bonds at 7%, huyu mwingine is borrowing locally at 17%. So who is the moron?
 
algorithm said:
The Uhuru chinese loans were long term very low interest loans, better than imf. Also uhuru was borrowing locally via treasury bills/bonds at 7%, huyu mwingine is borrowing locally at 17%. So who is the moron?
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There is plenty of ignorance in your argument.
To start with, IMF is like the central bank - a lender of last resort. You approach them when you have exhausted all other options. BTW, they were invited by Uhuru more than 2yrs ago.
Bills/bonds rates are dictated by market forces, partly from our actions, external factors, and partly coz of Washington actions. JS once said govt will not borrow at an interest rates beyond 10%. They then tried an interest rate of 13-14% but the markets defied them. @Okiya can explain coz he knows it better. These interest rates will keep rising in the foreseeable future.
 
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Othello said:
Bruh, we know IMF and world bank are pests coz their loans comes with unpleasant preconditions, but this is good news. I think we are not at risk of default anymore.
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Soma hii kitabu and you will just realise the hole huyu mtu anatuweka na hii maneno ya imf na wb. Kibaki and Uhuru removed us from the jaws of the IMF but huyu mtu ameturudisha huko at lightning speed.

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He is borrowing at record speed.

"Data from the National Treasury showed that Ruto's regime borrowed Sh1.2 trillion in the first eight months ending July, far more than the Sh437 billion Uhuru borrowed in the first 12 months.

Should World Bank Executive Directors approve the Sh1.8 trillion loan, it will add up to the Sh141.4 billion new loan the International Monetary Fund(IMF) approved in mid-May and another Sh87.73 billion Kenya borrowed in December 2022.

Kenya secured another syndicated Sh70.55 billion loan in July with Central Bank of Kenya (CBK) data indicating that the government borrowed Sh137.48 billion between September and November 2022."
 
Othello said:
I am sure one of the pre-conditions for the loans disbursed already was to devalue the shilling. Hii mteremko yote sio ya kawaida.
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So you owe 9 trillion shillings. Then IMF comes along to "help" you manage the debt and gives you 1.8 trillion but on condition that you devalue your shilling by 50%. And due to the devaluation, your 9 T debt now shoots to 9+4.5=13.5 T. If you deduct the IMF "help" your total loan is now 13.5-1.8= 11.7 trillion. The IMF came to help you pay a 9 T loan but left you with a 11.7 T loan. And the IMF 1.8T still has to be repayed with interest. What kind of stupidity is this?
 
algorithm said:
So you owe 9 trillion shillings. Then IMF comes along to "help" you manage the debt and gives you 1.8 trillion but on condition that you devalue your shilling by 50%. And due to the devaluation, your 9 T debt now shoots to 9+4.5=13.5 T. If you deduct the IMF "help" your total loan is now 13.5-1.8= 11.7 trillion. The IMF came to help you pay a 9 T loan but left you with a 11.7 T loan. And the IMF 1.8T still has to be repayed with interest. What kind of stupidity is this?
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Being poor and having zero financial skills equals more poverty.

IMF wako kazini. Nothing personal.
 
algorithm said:
So you owe 9 trillion shillings. Then IMF comes along to "help" you manage the debt and gives you 1.8 trillion but on condition that you devalue your shilling by 50%. And due to the devaluation, your 9 T debt now shoots to 9+4.5=13.5 T. If you deduct the IMF "help" your total loan is now 13.5-1.8= 11.7 trillion. The IMF came to help you pay a 9 T loan but left you with a 11.7 T loan. And the IMF 1.8T still has to be repayed with interest. What kind of stupidity is this?
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I think you are basically a deep fried fool. I repeat, you only approach IMF if you have no other option. They lend you money with very tough preconditions and you have no chance for argument. It's the deep dark hole that Uhuru put us in when you were singing hosanna to him. This is the debt profile.

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How else do we raise that 1T+ to pay the debt if not from borrowing, and of which it's only IMF can lend you? If it was you, how would you pay the eurobond investors back? Or do you prefer defaulting the Sri Lanka/Ghana way? Mind you, even when you default, there's still only one creditor who can lend you.
 
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