EconomyKenya Receives Kes 17 Billion Loan from World Bank to Support Climate Change Action

Kenya has received a Kes 16.67 billion ($150 million) loan from World Bank to support local communities hard hit by climate change and drought, leading to loss of livelihoods.

The World Bank through its arm, International Development Association, approved the facility to be extended through the new Financing Locally–Led Climate Action (FLLoCA) programme.

Speaking during the approval of the agreement, Treasury CS Secretary Ukur Yatani said climate change remains the biggest challenge.

He said Kenya’s climate-sensitive economy is prone to drought and floods, and this affects about 2.8 per cent of the GDP annually.

“As a nation, we remain cognisant of the challenges that lie ahead but remain confident that with the support of the World Bank and other development partners. We will build our national and counties’ capacities to manage climate risk and enhance our resilience with home grown solutions in a collaborative and progressive approach, between the two levels of government, but more importantly owned and driven by local communities.” Ukur Yatani.

The funds are aimed at sustaining locals and vulnerable people affected by drought, supporting alternative sources of income, and helping both county and national government in controlling climate risks and persistent drought occurrence.

The facility comes at a time when most parts of the country such as Tana River, Isiolo, Kilifi, Garissa, and other northeastern areas and some wildlife parks have been hit by drought leading to loss of livelihoods.

Counties will receive their annual disbursements based on their performance against a specified results-based criterion

About 87.5 per cent of the programme resources will be spent at the county for disbursement to those vulnerable.

“Communities in rural areas, especially those in arid and semi-arid regions which have been affected by the impacts of climate change such as droughts and floods, outbreaks of climate-related diseases, low farmland productivity, and declining livestock, will be the primary beneficiaries of the program,” said Nicholas Soikan, World Bank Senior Social Development Specialist and Task Team Leader.

The majority of the arid and semi-arid regions are facing a drought that is pushing most people in rural areas into worse conditions, undermining their living standards.

Read also; World Bank Approves $130 Million for Kenya COVID-19 Vaccines.

 

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