New Country Partnership Strategy to provide $4 billion (Kshs340 billion) in opportunities for more growth and shared prosperity
The World Bank Group yesterday endorsed a new five year development strategy to help Kenya succeed in its efforts to boost economic growth sustainably, create more jobs for young people, build vital infrastructure, and devolve power in an effort to end extreme poverty and share resources.
The new Country Partnership Strategy (CPS) for Kenya, endorsed by the World Bank’s Board of Executive Directors, anticipates delivering over $4 billion of financing in the next five years to support Kenya to realize its potential to become one of Africa’s enduring economic powers by removing the obstacles to more growth and significantly less poverty.The joint strategy by the Bank, IFC and MIGA is part of a sustained effort to help fulfill Kenya’s ambitions of becoming a modern economy in which growing prosperity is shared across all communities.
“This is a special time in Kenya, especially as the government moves to decentralize more power and public services to local communities,” said Diariétou Gaye, World Bank Country Director for Kenya. “We have a unique opportunity to help Kenya create jobs, build infrastructure, and to lift millions of its citizens out of poverty over the long term and ensure that they share in the country’s growing prosperity.”
While Kenya has grown on average at 4.6 percent annually over the last decade, poverty and inequality have fallen less dramatically which has prevented many Kenyans from sharing in the benefits of the country’s strong economic performance. Inequality remains high in terms of opportunities and outcomes between men and women, Kenya’s growing youth population, and people living in remote, underdeveloped regions of the country.
The Bank Group’s new strategy is aligned with the government’s Vision 2030 priorities, which calls for rapid, sustained growth as the key driver in reducing poverty and creating opportunity for all. The Bank is supporting these priorities through its development investments in more and better quality infrastructure, improved health, social protection, rural development, and other areas that can increase economic opportunities while lowering inequality.
“Inclusive growth requires job creation through a dynamic private sector,” said Oumar Seydi, IFC’s Director for Eastern and Southern Africa. “We aim to expand our support for strong businesses in an increasingly competitive economy.”
The Bank, IFC, and MIGA are committed to leveraging private resources for innovative financing for infrastructure including public-private partnerships in energy, water and transport. “MIGA will continue to scale up its support in the energy sector, and will help mobilize sustainable private investments that support job creation,” said Michel Wormser, MIGA Vice President and Chief Operating Officer.
