Ruto Explains How He Will Use Ksh2.5 Trillion Loans From World Bank & IMF
Ruto revealed that the funds would be used to reduce the effects of inflation which has seen the cost of living go up.
Marvin Chege 
President William Ruto on Monday, November 20 defended the Ksh1.8 trillion financing pledged by the World Bank as well as the Ksh687 billion loan approved by the International Monetary Fund (IMF).
In a statement after meeting World Bank President Ajaypal Singh Banga, Ruto revealed that the funds would be used to reduce the effects of inflation which has seen the cost of living go up.
The two met on the sidelines of the G20 Compact with Africa Conference on Economic Cooperation, Promotion of Private Investment held in Berlin, Germany.
President William Ruto (in grey suit) with World Bank President Ajay Banga in Germany on November 20, 2023. /PCS
The Head of State, while thanking the lender, further noted that part of the advance, likely to fund the state's accounts for three years, will also used to cover debt vulnerabilities.
"Kenya is indebted to the financial and technical support that the World Bank — and the International Monetary Fund — continue to extend to us. We are especially grateful to the Institutions for their latest assistance — KSh1.8 Trillion and KSh687 Billion, respectively — which will rebuild our buffers, and tame inflation and debt vulnerabilities. This support will help Kenya withstand shocks, accelerate the Bottom-Up Economic Transformation Agenda and advance our long-term, robust and inclusive growth," Ruto explained how he would allocate the joint Ksh2.4 trillion loan.
"Berlin, Germany, with World Bank President Ajay Banga on the sidelines of G20 Compact with Africa Conference on “Economic cooperation, promotion of private investment”."
The President also noted that he was exploring the possibility of using renewable energy to grow jobs for millions of people.
"Africa is ready to create an enabling environment, enact policies and facilitate investments necessary to unlock resources to meet our own climate commitments and contribute meaningfully to the decarbonization of the global economy," he added.
"Africa has enough natural resources to underwrite a new chapter in clean energy for the continent and the world."
The latest announcement propels the World Bank as Kenya's biggest development finance partner and comes after the World Bank stated that the Ksh1.8 trillion ($12 billion) financial package awaits World Bank executive directors' approval and will depend on the bank's lending capacity.
It confirmed that commitments from the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) now stand at Ksh 1.26 trillion ($8.3 billion), with Ksh670.4 billion ($4.4 billion) available for disbursement.
IMF recently reached a staff-level agreement with the Kenyan government which will see the global financial institution boost Kenya with an additional Ksh142.8 billion (USD 938 million) loan.
The agreement was reached after IMF's staff team led by Haimanot Teferra, visited Nairobi from October 30, 2023 to November 15, 2023, and held discussions with the Kenyan authorities for the 2023 Article IV Consultation, the sixth review of Kenya’s economic program supported by the IMF’s Extended Fund Facility (EFF) and Extended Credit Facility (ECF), and the first Review under the Resilience Sustainability Facility (RSF).
