Kenya seeks Ksh127bn World Bank/AfDB package to plug 2026/27 financing gap

On 2 October 2026 Kenya opened talks with the World Bank and African Development Bank for a combined Ksh127 billion loan package (Ksh94bn DPO from the World Bank and Ksh34bn from AfDB). Treasury expects the facilities to be released before the end of the 2026/27 financial year, subject to agreed reforms.

If delivered, Ksh127bn of MDB policy-based financing should reduce near-term external rollover pressure and ease immediate sovereign funding needs, lowering short-dated refinancing risk. However, stalled IMF negotiations and conditional reform requirements mean medium- and longer-dated credit premia may remain elevated until IMF outcomes or tranche terms are clarified and disbursements materialise.

World Bank/AfDB agreement on the DPO reforms and formal approval/disbursement timetable; IMF mission expected late Nov–early Dec 2026.