NAIROBI, Kenya- Kenya is expected to receive about $400 million (approximately Sh51.5 billion) in emergency financing from the World Bank within six weeks to help cushion the country against mounting risks, including Ebola, El Niño-related disruptions and elevated energy prices, a source familiar with the matter has said.
The financing is being pursued through the World Bank’s Rapid Response Option (RRO), an emergency facility designed to provide countries with quick access to funding when they face eligible crises.
Kenya initially sought access to the facility after the outbreak of the Iran war in February pushed global crude oil prices sharply higher, increasing pressure on the country’s finances.
However, the risks confronting Kenya have since widened beyond energy costs, according to the source who spoke to Reuters.
Ebola, El Niño Add to Kenya’s Risks
The emergency funding is expected to support Kenya in dealing with the potential impact of multiple shocks.
According to the source, the financing would help cushion the health sector against Ebola risks, support agriculture and water resources amid El Niño conditions, and mitigate the broader economic impact of high energy prices.
A World Bank spokesperson confirmed that the lender is working with Kenya to finalise a framework that would allow the country to access rapid financing when an eligible crisis or emergency occurs.
The World Bank cited potential emergencies including the conflict in the Middle East and El Niño, but did not disclose the amount of financing being considered.
Kenya’s Ministry of Finance had not responded to a request for comment at the time of reporting.
Kenya Faces Regional Ebola Threat
The potential health-related funding comes amid concerns over Ebola outbreaks in the region.
The Democratic Republic of Congo has experienced severe Ebola outbreaks, while the virus has also spread to neighbouring Uganda at various points.
Kenya shares borders with both Uganda and Tanzania and has historically strengthened surveillance and preparedness measures when infectious disease outbreaks occur in the region.
The emergency financing could provide additional resources for health preparedness and response if the disease poses a significant threat to Kenya.
El Niño Raises Agriculture, Water Concerns
The World Bank funding is also expected to address potential disruption from El Niño weather conditions, particularly in agriculture and water resources.
Kenya experienced one of its most severe El Niño episodes in 1997, when months of heavy rainfall destroyed crops and caused extensive damage to roads and homes.
The prospect of renewed weather-related disruption comes as the country continues to strengthen preparedness for climate-related shocks affecting food production, infrastructure and livelihoods.
Why Kenya Could Access About $400 Million
The potential $400 million allocation is linked to the World Bank’s financing rules for the Rapid Response Option.
According to the source, emergency financing for countries such as Kenya is typically capped at 10 per cent of a country’s undisbursed lending portfolio.
That calculation would give Kenya access to roughly $400 million based on its current World Bank portfolio.
Kenya’s World Bank project portfolio exceeds $7 billion, of which about $3 billion has been disbursed or committed, according to the source.
The final amount, however, could change depending on the undisbursed balance when the financing framework is completed.
Contingency Project Being Finalised
Kenya and the World Bank are currently finalising a Contingency Emergency Response Project, which will establish the terms and conditions for accessing the emergency financing.
The source said the World Bank board has already approved the projects underpinning the Rapid Response Option, meaning funds can be released once the contingency document is finalised.
