The World Bank has approved 750 Million dollars (Sh.75billion) loan for Kenya.
The amount is expected to be used in support of reforms in digital technology agriculture, housing and fiscal management. The Kenya government had not approached the World Bank for a loan for more than one decade.
The World Bank Board reached the decision to approve the loan following consultations from within.
During the tenure of former President Mwai Kibaki, the county avoided this form of funding.
The WB often gives countries loans to fund private investment as well as financing other projects including food security.
The financier said it has approved the loan to support the government’s Big Four agenda before President Uhuru Kenyatta completes his term in office
The debt burden of the county has since grown after the approval of the loan.
Experts believe that the approval of the loan has posed a massive risk on the country even as Uhuru assures Kenya of his commitment to transform the economy of this nation.
An economist, who spoke to Daily Nation on condition of anonymity, said that the move is detrimental to the country.
“We continue to justify the current situation where the Treasury prefers to use debt-to-GDP, hence arguing that we’re within the IMF benchmark sustainability ratios,” said an economist.
The move by the government has continued to elicit mixed reactions from different factions.