Kenya announces talks for Sh127bn of World Bank and AfDB policy financing as IMF talks delay

On 2 October 2026 Kenya announced it is pursuing about Sh127 billion in additional external financing — roughly Sh94 billion via a World Bank Development Policy Operation and about Sh34 billion via an AfDB policy-based operation — to help fill a financing gap while successor IMF support remains delayed.

If approved and disbursed, the World Bank DPO and AfDB policy operation would provide budget support that reduces near-term reliance on FX reserves and external commercial refinancing. Until approvals and disbursements occur, short-to-intermediate eurobond maturities face elevated rollover risk and Kenya’s FX reserve buffer remains the primary immediate liquidity backstop; conditionality could also influence fiscal policy and debt-service timing.

World Bank and AfDB board approvals and disbursements (expected within the 2026/2027 fiscal year) and the IMF mission due end-Nov/early-Dec 2026.