The World Bank has demonstrated substantial financial support in 2024, providing a comprehensive package of $117.5 billion (KSh 15.2 trillion) through various financial instruments including loans, grants, equity investments, and guarantees to both partner countries and private enterprises.
Africa emerged as the primary beneficiary of World Bank funding, securing $38 billion (KSh 4.92 trillion) of the total disbursement. This is according to World Bank Annual Report 2024. The regional allocation followed a descending order:
– Europe and Central Asia: $24.7 billion
– Latin America and Caribbean: $19.4 billion
– South Asia: $15.9 billion
– East Asia and Pacific: $12.5 billion
– Middle East and North Africa: $6.5 billion
– Global initiatives: $0.4 billion
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JP Morgan, the world’s biggest bank by balance sheet, has received the approval of the Central Bank of Kenya to open a representative office in Nairobi. The office will serve as a liaison and marketing hub for JP Morgan and its subsidiaries.
— William Samoei Ruto, PhD (@WilliamsRuto) October 24, 2024
Though it will not engage in banking… pic.twitter.com/AVZZrqCmtM
World Bank’s Mission and Approach
The institution provides financial support through the International Development Association (IDA), focusing on the world’s 75 poorest nations through concessional grants and loans. As stated in their report:
“In 2024, the World Bank Group provided much-needed financing, conducted research and analysis, and partnered with governments, the private sector, and other institutions to address global development challenges. Its five institutions share a commitment to reducing poverty, increasing shared prosperity and promoting sustainable development.”
Top African Borrowers in 2024
Among African nations, the leading borrowers were:
1. Ethiopia: $3,395 million (KSh 439.7 billion)
2. Nigeria: $2,200 million (KSh 284.9 billion)
3. Tanzania: $1,815 million (KSh 235 billion)
4. Kenya: $1,654 million (KSh 214.2 billion)
5. Mozambique: $1,130 million (KSh 146.3 billion)
Here is the full list of top African borrowers from World Bank:
| Rank | Country | Loan Amount |
|---|---|---|
| 1 | Ethiopia | KSh 439.7 billion |
| 2 | Nigeria | KSh 284.9 billion |
| 3 | Tanzania | KSh 235 billion |
| 4 | Kenya | KSh 214.2 billion |
| 5 | Mozambique | KSh 146.3 billion |
| 6 | Rwanda | KSh 103.7 billion |
| 7 | Ghana | KSh 103.6 billion |
| 8 | Côte d’Ivoire | KSh 98 billion |
Kenya’s Debt Outlook
Kenya’s debt trajectory shows concerning growth patterns. The National Treasury projects public debt to escalate from KSh 10.3 trillion (June 2023) to KSh 13.2 trillion by June 2027. This includes:
– Domestic debt: Expected to reach KSh 6.82 trillion
– External debt: Projected to hit KSh 6.4 trillion
The debt service burden is anticipated to surge significantly from KSh 1,199,436 million (June 2023) to KSh 1,899,715 million (June 2027).
Adding to these concerns, the International Monetary Fund has issued a warning about Kenya’s potential risk of loan default, citing inadequate revenue collection as a primary factor.
