Tuesday, February 17, 2926 - President William Ruto has suffered a setback after the World Bank trimmed the amount of commercial financing it had planned to help Kenya mobilise for its Affordable Housing programme, cutting the figure by nearly two‑thirds.
Commercial lenders are now expected to contribute Ksh46.45
billion ($360 million), down from an earlier target of Ksh116.12 billion ($900
million) under the proposed financing structure.
Overall, the total funding package the World Bank is
assembling has been revised to about Ksh117.34 billion ($910.3 million),
compared to the initial estimate of Ksh174.18 billion ($1.35 billion).
A World Bank official told Bloomberg that the
adjustment does not represent a reduction in the overall project cost but
rather a revision of the expected private capital to be mobilised.
The lender noted that figures remain subject to change until
formal board approval, tentatively scheduled for March 19th.
While commercial financing has been scaled back,
concessional support has been increased.
The World Bank’s concessional funding now stands at Ksh61.29
billion ($475 million), up from the previously planned Ksh48.38 billion ($375
million). This portion is expected to provide Kenya with more affordable terms
compared to market‑based borrowing.
In addition, the OPEC Fund is set to contribute Ksh9.68
billion ($75 million) to the initiative.
The revised structure signals a shift in balance between
private and development financing within the housing and land reform programme.
The programme is designed to support Kenya’s Affordable
Housing agenda and broader land sector reforms, identified as key pillars of
President William Ruto’s economic and social policy priorities.
The Kenyan DAILY POST
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