As Kenya pushes forward with negotiations for a Ksh97.12 billion loan from the World Bank, citizens are finding themselves on the receiving end of stringent reforms tied to the deal. The funding, though not officially confirmed, is part of a broader World Bank policy operation that aims to “clean up” Kenya’s fiscal management — but at what cost?
Here are the key things Kenyans are now being forced to do to unlock the loan:
1. Use the New e-Government Procurement System (eGP)
Launched on Monday by Treasury CS John Mbadi, the Electronic Government Procurement system (eGP) is now mandatory for all government tenders.
This means:
- All tender applications, bid bonds, evaluations, and budget allocations must go through eGP.
- Suppliers, contractors, and even small traders seeking government business must register and transact via the digital platform.
Mbadi has ordered all Principal Secretaries and accounting officers to ensure their departments adopt the system immediately.
2. Centralise All Government Funds at the Central Bank
In a radical move to curb corruption and improve transparency, the World Bank is demanding that all government revenues and expenditures be consolidated into one account at the Central Bank of Kenya (CBK).
CBK Governor Kamau Thugge has confirmed that the plan is at an advanced stage.
This could affect:
- How quickly counties receive funds.
- The flexibility of ministries to allocate emergency resources.
3. Allow Refugees to Live and Work in Kenya
Under the Ushirika Plan, Kenya has agreed to integrate refugees into the local economy.
This includes:
- Granting them the right to work and settle in urban areas.
- Shifting from camps to community-based settlement models.
This is a significant policy shift and one of the lesser-known World Bank loan conditions.
4. Improve Social Protection through Inua Jamii
The World Bank has insisted on enhancing support to vulnerable households.
Kenya must:
- Expand and improve the Inua Jamii cash transfer program.
- Digitise social assistance to reduce leakages and delays.
This comes at a time when many Kenyans are already struggling with the rising cost of living.
5. Simplify and Harmonise Business Licensing
To unlock the Ksh97B loan, Kenya must reduce bureaucratic barriers to business.
This reform targets:
- Duplication of licenses across national and county governments.
- Long approval times and bribe-prone systems.
The goal is to create a more business-friendly environment, especially for SMEs.
6. Fix Nairobi’s Traffic with Commuter Rail Services
In an effort to tackle Nairobi’s chronic traffic, the government is required to expand the Nairobi Commuter Rail Service.
This means:
- More trains, better timetables, and upgraded infrastructure.
- Integration with matatus and BRT (Bus Rapid Transit) systems.
Whether this will benefit the mwananchi remains to be seen.
What’s at Stake?
Kenya had earlier abandoned a Ksh110.07 billion loan program from the IMF, raising eyebrows in fiscal circles.
Now, all hopes rest on this World Bank deal — but it comes with non-negotiable strings attached.
“Development funding will only proceed when all prior actions are met,” the World Bank stated.
Final Thought
While the government argues these reforms will improve accountability and economic resilience, critics say ordinary Kenyans are the ones being forced to adjust — again.
From digital procurement headaches to tighter fiscal controls, the price of borrowing is no longer just interest — it’s reform or perish.
What’s your take on the eGP system and the World Bank conditions? Drop your thoughts below.
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