Kenya seeks new World Bank and AfDB funds for its budget through June 2027
Kenya is negotiating fresh financing with the World Bank and African Development Bank to support its budget, with funds expected before the financial year ends in June 2027, central bank governor Kamau Thugge told Reuters. No new agreement or disbursement has been announced; the talks come as Kenya manages debt repayments and seeks to limit domestic borrowing.
Bottom line — Kenya’s 2026/27 budget targets €1.7bn (KES247.2bn) in net external financing, but that borrowing is not yet secured.
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The budget sets a deficit target of 5.5% of GDP.
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The World Bank approved a €643mn ($750mn) Development Policy Operation in June; the AfDB approved a €293.9mn reform-linked loan in July.
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Thugge said a debt-for-food swap is also under consideration, but gave no details of the negotiations.
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A proposed €857mn ($1bn) swap with the US International Development Finance Corporation has not yet had a bank mandated to arrange it, according to Kenya’s Public Debt Management Office.
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Kenya expects to make about €343mn (KES51.9bn) available for emergencies by redirecting existing, undisbursed World Bank project funds—not by securing fresh financing.
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Thugge said a new IMF lending programme is not in the government’s current plans, though it could be discussed during the Fund’s December visit to Nairobi.