Kenya seeks KSh 127 billion from World Bank and AfDB as IMF talks stall

Kenya is pursuing KSh 127 billion in policy-based loans from the World Bank and the African Development Bank (AfDB) after talks on a new International Monetary Fund (IMF) programme stalled, according to a report published on 2 October 2026 by Kenyans.co.ke.

The report, which attributes the breakdown to The Africa Report, says the package consists of KSh 94 billion under the World Bank's Development Policy Operations (DPO) programme and a KSh 34 billion policy-based loan from the AfDB. (The two components as reported add up to KSh 128 billion, not KSh 127 billion.) Raphael Owino, Director General of the National Treasury's Public Debt Management Office, said the two facilities are expected to be released before the end of the 2026/2027 financial year, according to the report.

Reforms attached

Owino put the World Bank operation at US$725 million. "We are working on a DPO of $725 million with the World Bank. We are already discussing the potential reforms for that," he said, as quoted by Kenyans.co.ke.

The reforms under discussion include disclosure of public officials' private interests, tighter rules on public-private partnerships (PPPs), whistleblower protection and amendments to the Public Finance Management Act, according to the report.

The World Bank figure matches the Treasury's Annual Borrowing Plan for 2026/27, which includes KSh 94.2 billion under a World Bank Development Policy Operation, as Kenyans.co.ke reported on 21 August 2026.

Why the IMF matters

New IMF programme talks have stalled, the report says. "There was a transition of the IMF on the Kenyan team. So, they requested to be given a transitional period, which we gave them. Now we expect a new mission to come towards the end of November or early December," Owino said.

Kenya's fiscal deficit is projected at KSh 1.288 trillion in 2026/2027, driven by higher interest payments on domestic debt and lower projected revenue, according to the same report.

Other borrowing options

Kenyans.co.ke also reports that Kenya is pursuing a planned debut panda bond in China and Japan's samurai bonds. Pulse Kenya reported on 14 August 2026 that the Treasury's latest borrowing plan says Kenya will explore an inaugural panda bond of about US$300 million in 2026/27, which would require legal and regulatory approvals before it could be issued, alongside plans for other instruments including a samurai bond.

What next

The World Bank talks turn on agreeing a list of reforms. The IMF mission, if it arrives on schedule, would come roughly two months from now.