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World Bank pledges loan to Kenya, but sets conditions

By Shanna | November 27, 2009

The World Bank has pledged an average of Sh30 billion ($400 million) to Kenya annually over the next three years, but has hinged it on the condition that Kenya implement a number of governmental and economic reforms.

The money has been earmarked for implementing various projects for the country’s Vision 2030 target, and is critical for various development projects. Among the reforms is the curbing of corruption, a stipulation that has already inhibited the roll-out of $1.2 billion in project funds by The Bretton Woods institution.

The news also comes a day after reports that the future of two World Bank-funded projects hangs in the balance, as they are currently being investigated by Treasury, a senior World Bank official has said. In September, Treasury stopped funding two World Bank-DfID sponsored education and special programme projects after reports suggested that Sh131 million had been lost to fraud.

The World Bank official says the decision is good, and the outcome of the investigation will determine whether funding will resume or not.

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