From The Rio Times · Samuel Ncube · · 1m 10s
World Bank Pushes Kenya to Pay Down Debt
World Bank urges Kenya to use infrastructure fund money to retire costly debt.
In brief
World Bank urges Kenya to use infrastructure fund money to retire costly debt. World Bank advises Kenya to redirect National Infrastructure Fund proceeds to pay off high-cost debt to reduce interest costs and refinancing risks. Originally reported by The Rio Times.
World Bank Advice
World Bank advises Kenya to use part of National Infrastructure Fund proceeds to pay off high-cost debt.
“could reduce interest costs, lower refinancing risks, and strengthen debt sustainability”
Debt Levels
Public debt reached 70% of economy by mid-2026 with 56.2% borrowed domestically.
Debt Cost
Interest payments absorb about one third of government revenue.
Infrastructure Fund
National Infrastructure Fund targets Ksh5 trillion (US$38.5 billion) from privatisation proceeds.
Debt Risk
World Bank says Kenya remains at high risk of debt distress.
Fiscal Advice
World Bank calls for sustained fiscal consolidation to narrow spending-revenue gap.
Debt Breakdown
Total public debt Ksh13.5 trillion (US$104 billion) with Ksh7.7 trillion owed domestically.
Fund Progress
Kenya has already invested Ksh103.5 billion (US$0.8 billion) from Kenya Pipeline Company sale.
2027 Election
World Bank warns 2027 general election could add uncertainty and pressure on spending.
Corruption Impact
Corruption costs Kenya about 2% of GDP annually through higher deficits.
The big picture
World Bank advises Kenya to redirect National Infrastructure Fund proceeds to pay off high-cost debt to reduce interest costs and refinancing risks.
