Kenya
Inclusive Growth and Fiscal Management Development Policy Financing
Chair Summary*
The Executive Directors approved a credit in the amount of SDR 540.3 million (US$750 million
equivalent) to the Republic of Kenya for the Inclusive Growth and Fiscal Management Development Policy
Financing (DPF) on the terms and conditions set out in the President's Memorandum. Messrs. Bethel,
Chavez Presa, Montgomery, Schoenleitner and Zattler wished to be recorded as abstaining.
Directors welcomed the World Bank's support to the Government of Kenya's "Big Four" inclusive
growth agenda and to the operation, noting that it provides an effective avenue to engage with the authorities
on key policy and institutional issues.
Directors noted that the DPF would help bridge the government's financing gap through
concessional financing, while helping the government pursue its development priorities. Directors stressed
the need to deepen reforms to increase tax revenues, enhance fiscal space and ensure debt transparency and
the disciplined management of fiscal resources. They highlighted the continuing need for implementation
of measures that could pave the way for the removal of interest caps.
Directors commented on the size and the level of ambition of this operation. Directors stressed the
need for continued efforts to improve good governance and fight corruption in Kenya. They urged staff to
be more ambitious in the scope of such measures and to deepen the policy dialogue with the government in
these areas. They also inquired about the distributional impacts of the program and noted that poverty and
gender analysis should be further strengthened.
Directors underlined the importance of the government's strong ownership of its reform agenda.
There were queries about how timing and sequencing of the program are being coordinated with the IMF.
Directors encouraged the Bank to strengthen technical assistance and capacity building activities
to help close the implementation gap in Kenya and underlined the importance of effective coordination
among the Bank, IMF and other development partners in supporting the government's reform agenda.
*This Summary is not an approved record.