Kiribati is set to strengthen public finances, improve essential service delivery, and boost climate resilience through a new package of reforms supported by the World Bank. The programme focuses on enhancing budget transparency, improving tax efficiency, strengthening state-owned enterprises, promoting cleaner communities, and ensuring safer housing suited to a changing climate.
A core element of the reform agenda is the modernization of Kiribati’s legislative framework under the Second Resilient Growth Development Policy Operation with a Catastrophe Deferred Drawdown Option. A new Public Financial Management Bill will significantly reduce the time required to publish audited government accounts, improving transparency and public trust. Tax reforms will ensure fair application of Value Added Tax on imports while removing VAT from essential menstrual health products to lower costs for women and girls.
The reforms also aim to strengthen state-owned enterprises through clearer operational guidelines and more consistent financial reporting. Government ministries will shift to prepaid electricity meters to prevent overdue payments, helping stabilize the cash flow of the Public Utilities Board and supporting reliable electricity and water services.
Environmental and climate resilience measures form another key pillar of the programme. In South Tarawa, incentives will be introduced to scrap and recycle vehicles, reducing pollution in lagoons and coastal areas while creating waste recovery jobs. Updated building standards will require cyclone-resistant designs and elevated foundations for new homes, supported by streamlined permitting processes and training for local builders.
World Bank officials highlighted that the reforms are designed to deliver tangible benefits for communities by improving service delivery, transparency, and resilience. The initiative aims to raise tax revenues, expand waste collection coverage in South Tarawa, and ensure that the majority of new buildings meet climate-resilient standards by 2028.
The reforms are supported by USD 15 million in grant financing from the International Development Association, equivalent to around 5 percent of Kiribati’s 2025 GDP. This includes immediate budget support and contingent financing to strengthen disaster response, aligning with Kiribati’s long-term development vision and national planning priorities.
