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Africa Focus: Kenya seeks World Bank support for key projects

Xinhua, February 16, 2015 Adjust font size:

Kenya is seeking the World Bank's support for three pipeline projects that are slated to begin later this year, a senior government official said on Monday.

Cabinet Secretary of the National Treasury Henry Rotich urged a visiting team of World Bank's Executive Directors to approve funding to the tune of 300 million U.S. dollars for the South Sudan-Eastern Africa Regional Transport and Trade Facilitation.

"We are also requesting a credit facility for 250 million dollars and a 200 million dollar partial risk guarantee for the Kenya Electricity Modernization project," Rotich said, adding the project will help to improve the reliability of electricity transmission in the country as well as help strengthen the financial position of Kenya's sole electricity distribution company.

The East African nation is also seeking 88.4 million dollars from the World Bank to finance a project to improve the mathematics competency of young learners.

The World Bank team is on a three country mission during which they will visit Ethiopia, Malawi and Kenya.

Rotich said Kenya has a low absorption rate of World Bank funds. "This is due to the lengthy procurement process that has 13 steps that must be met before funds reach the intended beneficiaries."

Since 1960, the World Bank has provided 100 credits and grants to support various sectors of the Kenyan economy. The bank's current portfolio consists of 24 country specific active projects and six regional projects, all with a total commitment of 4.3 billion dollars.

Last year, Kenya and the World Bank signed the Country Partnership Framework for the 2014-2018, during which Kenya will receive 4 billion dollars.

Rotich said the financial institution contributes about one- third of the country's total international donor support, adding that the economy is still resilient despite the continuing challenges facing the global community.

According to the Treasury, Kenya's economy expanded by 5.3 percent in 2014. "We are looking to reach between 6 percent to 7 percent in the near term and 10 percent in the outer years," he said.

Rotich said in order to accelerate economic growth, the government will continue to invest in infrastructure.

"We think our competitiveness continues to be weak because of the poor state of infrastructure," he said. "We are also putting a lot of emphasis on improving the agricultural productivity which remains low despite the sector's huge contribution to the Gross Domestic Product."

Rotich added that Kenya will also continue to invest in human capital development, especially in the areas of education and health.

World Bank Executive Director Peter Larose said the spot light is on Kenya and all stakeholders need to cooperate in order to ensure that it continues with its economic growth.

Larose said the World Bank is in the country to assess the development challenges as well as focus on the economic opportunities that Kenya can offer. He said that Kenya plays a critical role both in east Africa as well as the Africa continent as a whole. Endi