NAIROBI, Kenya — Kenya is expected to receive approximately $400 million in emergency financing from the World Bank within the next six weeks to strengthen the country's response to multiple emerging risks, including the regional Ebola outbreak, the potential impact of El Niño weather conditions, and persistently high global energy prices.
According to a source familiar with the matter, the funding will be provided through the World Bank's Rapid Response Option (RRO), an emergency financing mechanism designed to provide swift financial support to countries facing unexpected crises.
Kenya applied for access to the facility earlier this year after the outbreak of the Iran conflict in February triggered a sharp rise in global crude oil prices, placing additional pressure on the country's economy and public finances.
However, the country's risk profile has since expanded beyond the impact of higher fuel costs.
The World Bank confirmed it is working with the Kenyan government to finalize a financing framework that would allow the country to rapidly access funds whenever an eligible emergency arises.
"We are supporting Kenya to finalize a framework to access rapid financing when an eligible crisis or emergency occurs, including the conflict in the Middle East and El Niño," a World Bank spokesperson said.
Kenya's National Treasury did not immediately respond to requests for comment.
The emergency funding is expected to support several priority areas, including strengthening the country's health system against the threat posed by the Ebola outbreak in the region, mitigating the effects of potential El Niño-related flooding and disruptions to agriculture and water resources, and cushioning the wider economy from elevated energy prices.
The funding comes as East Africa remains on high alert following the worst Ebola outbreak in the Democratic Republic of the Congo, where more than 3,000 people have died. The outbreak also spread temporarily into neighbouring Uganda, increasing concerns over cross-border transmission.
Kenya has also faced recurring climate-related shocks. The country experienced one of its worst El Niño events in 1997, when months of heavy rainfall destroyed crops, damaged infrastructure, displaced communities, and caused widespread economic losses.
Under World Bank guidelines, emergency financing through the Rapid Response Option is generally capped at 10% of a country's undisbursed lending portfolio. With Kenya's World Bank project portfolio exceeding $7 billion, including roughly $3 billion that remains undisbursed or committed, the country is expected to qualify for financing of about $400 million, according to the source.
Kenya and the World Bank are currently finalizing a Contingency Emergency Response Project, which will establish the terms and conditions governing access to the funds. The final amount will depend on the size of Kenya's undisbursed lending balance once the agreement is completed.
The World Bank's Board has already approved the projects underpinning the Rapid Response Option, meaning the funds can be disbursed once the contingency framework is finalized.
The anticipated financing comes as Kenya continues to seek additional funding sources to ease growing fiscal pressure amid rising public debt repayments and limited budgetary space.
Source: Reuters