World Bank approves USD 250mn to help Kenya fight poverty

By bne IntelliNews July 24, 2013

The World Bank said it has approved a USD 250mn zero-interest loan to help Kenya fight extreme poverty by setting up a national social safety net programme.

The safety net, which will unite five existing government programmes into a better coordinated and more efficient system, is aimed to reach up to 3.3 million of the country’s poorest people by 2017 and cushion them from the worst effects of crises such as drought, malnutrition, and unemployment.

The World Bank noted that while Kenya has posted strong economic growth over the past decade, 38% of Kenyans still live in poverty, especially in rural areas.

“Being cushioned against devastating income losses by a small but regular transfer of money from the program helps poor people afford consistent nutrition and healthcare, and keep children in school,” Diarietou Gaye, World Bank Country Director for Kenya, said in a statement.

The funds from the World Bank’s International Development Association (IDA) will be disbursed to Kenya over the next four years. According to Ritva Reinikka, World Bank Director for Human Development in Africa, the success of such broad national programmes was first demonstrated in Brazil and Mexico, while in Africa safety nets have helped make rapid gains possible in countries like Ethiopia and Rwanda.

Last month, global ratings agency Moody’s projected Kenya’s economic growth to increase marginally to 5%-6% in 2013-15 from 4.7% in 2012 thanks to higher investments, adding that despite improving prospects, a limited economic diversification, narrow export base, low per-capita income and weak public-sector balance sheet, which is characterised by rising deficit and debt levels, continue to constrain the country’s B1 rating.

Earlier on Wednesday, the European Union said it would give Kenya some KES 40bn to KES 50bn (EUR 432mn) for use in agriculture and other sectors under an aid programme for the period from 2014 to 2020.

Related Articles

UK’s Vedanta Resources to invest $1bn in Zambian copper mine

The UK-listed diversified resource and mining company Vedanta Resources will invest $1bn in its Zambian mining unit Konkola Copper Mines (KCM), creating 7,000 jobs, the mining firm said in a ... more

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss