Kenya is now in step with World Bank`s essential financing condition, making a step closer to unlock KES 97 billion frozen by the world bank, after President William Ruto assented to a conflict-of-interest bill, that seeks to put restraints on politicians and public officials doing business with the government to enrich themselves.
The multilateral lender had blocked the disbursement of the loan after Kenya failed to pass the conflict-of-interest bill 2023, a refurbished legislation to contain graft in the public service. The financing from the world bank is critical at a time when the government has found itself under mounting fiscal pressures signalled by missed revenue targets and a lack of a standing arrangement with the International Monetary Fund. The National Treasury initially co expected funding from world bank by June 30th but the disbursement was held back as the conflict-of-interest bill remained stuck at the legislative process.
The bill had earlier faced noteworthy challenges after the national assembly together with the senate differed on some provisions compelling the two chambers to form a mediation committee. Additionally, President William Ruto had also declined to sign the bill into law citing 12 clauses in the bill had been watered down.
The new legislation on the conflict-of-interest bill 2025 is expected to eliminate gaps on public offices use where granting a person preferential treatment beyond what is allowed, is prohibited. The act paves way for sturdy regulations against unethical conduct in public service, setting lofty standards on accountability, integrity and utter corruption measures.
Delays in getting the bill had left Kenya with a monetary hole of KES 96 billion in a financial year ending this month, pushing treasury to contemplate a third supplementary budget with some state offices already exhausting some budget allocations.
This loan from world bank is expected to be disbursed before the end of the current fiscal year. The money set to be channeled for Development Policy Operation (DPO) to support fiscal sustainability and reforms.
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