World Bank Mobilises Ksh14.5T in Private Capital as Kenya Faces Jobs Challenge

The World Bank Group has recorded a sharp increase in private capital directed towards developing economies, raising approximately Ksh 14.51 trillion in the financial year ended June 2026 as it seeks to support businesses and employment.

The funds represent more than three times the $35 billion mobilised in 2022, highlighting the institution’s growing focus on attracting private investors to development projects.

Across Africa, private capital mobilisation increased from Ksh 1.17 trillion in 2022 to Ksh 2.85 trillion in FY2026. The World Bank attributed the growth to measures designed to reduce investment barriers, including guarantees, local-currency financing and equity instruments.

The Group issued more than $25 billion in guarantees during the year, surpassing its target of $20 billion annually by 2030, four years ahead of schedule.

Kenya faces growing employment pressure

The increased focus on private investment comes as Kenya continues to face challenges in creating enough productive jobs for its expanding working-age population.

The World Bank estimates that Kenya’s economy will grow by 4.7 per cent in 2026. However, formal employment remains limited, with approximately 15 per cent of jobs classified as formal.

Kenya created 822,100 jobs in 2025, according to the Kenya National Bureau of Statistics Economic Survey, although most employment opportunities were generated in the informal sector.

The World Bank has identified competition reforms in electricity, telecommunications and fertiliser as potential drivers of productivity and employment. It estimates that such reforms could support up to 400,000 additional jobs annually at the average wage.

The institution already maintains a significant presence in Kenya. Its International Development Association and International Bank for Reconstruction and Development portfolios covered 32 active projects worth Ksh 911 billion as of March 2026.

The International Finance Corporation, the World Bank Group’s private-sector investment arm, held a Ksh 168.4 billion portfolio in Kenya as of February 2026.

Investment focused on jobs

Globally, the World Bank is directing capital towards infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing. These sectors accounted for 55 per cent of the Group’s total financing and mobilised capital in FY2026.

The institution estimates that 1.2 billion young people will reach working age over the next 10 to 15 years, while only about 420 million jobs are expected to be created.

World Bank Group President Ajay Banga said the success of the mobilisation would depend on whether the money reached projects that create economic opportunities.

“The number only matters if the capital goes where it can create opportunity and jobs,” Banga said.

Combined with its own financing, the World Bank Group’s total financing and mobilisation exceeded $200 billion during the financial year.