BUSINESS

Mbadi Seeks Faster World Bank Support Amid Economic Reforms

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National Treasury Cabinet Secretary John Mbadi
National Treasury Cabinet Secretary John Mbadi
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Kenya is pressing ahead with key economic reforms while calling on the World Bank to expedite the release of development funds, amid tight finances and rising public concern over national debt.

On Tuesday, November 4, 2025, National Treasury Cabinet Secretary John Mbadi met with Anne Bjerde, World Bank Managing Director for Operations, in Nairobi.

The meeting focused on Kenya’s economic recovery plans and ongoing projects supported by the Bank. Mbadi praised the World Bank for its continued partnership, saying the country remains committed to boosting growth and stabilising public finances through the Bottom-Up Economic Transformation Agenda (BETA).

“The government will continue to pursue prudent fiscal policies to reduce debt risks and protect key social programmes,” Mbadi stated, highlighting Kenya’s dedication to balancing financial stability with social needs.

He acknowledged that some of the reforms tied to global lenders have sparked debate on social media, but insisted that Kenya remains committed to implementing measures that support sustainable growth.

Mbadi emphasised that the World Bank’s partnership framework is fully aligned with BETA, making it a central part of Kenya’s strategy for development financing.

As part of the ongoing cooperation, the Bank recently approved Project Preparation Advances worth Ksh 1.16 billion. These funds will back three major initiatives: the Kenya Urban Mobility Improvement Project, the Road and Rural Economic Development Project, and the Lake Victoria Basin Development Project.

The Treasury also signalled plans to submit additional projects for funding under the upcoming IDA-21 cycle, indicating that Kenya intends to continue accessing concessional financing from the Bank.

Mbadi addressed concerns about gaps in previous reforms, assuring the Bank that the government is working to strengthen implementation, improve oversight, and enhance accountability.

In addition, the Treasury is finalising a Host Country Agreement with the World Bank through the Ministry of Foreign Affairs and reviewing rules to allow electronic signatures in government dealings.

These steps are designed to modernise procedures and speed up approvals, making it easier for projects to move forward quickly.

Mbadi appealed to the World Bank, requesting that funds under Development Policy Operation 7 be released promptly upon completion of technical consultations.

“The CS also sought the Bank’s support for the timely disbursement of DPO 7 resources once ongoing technical consultations are concluded,” the Treasury statement said.

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