The World Bank Group has approved a US$750 million Development Policy Operation (DPO) to support Kenya’s efforts to strengthen governance, improve public financial management, and expand social protection for vulnerable communities.
Approved on June 29, 2026, the Second Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation aims to improve transparency in the use of public resources, reduce corruption risks, strengthen accountability, and create a more stable environment for private investment and job creation.
The financing package includes a US$340 million loan from the International Bank for Reconstruction and Development (IBRD) and US$410 million in concessional financing from the International Development Association (IDA). The support also includes assistance for livelihoods programs benefiting refugees and host communities in Kenya.
A major focus of the reform program is improving governance and preventing conflicts of interest. Kenya has introduced new conflict-of-interest legislation and regulations that establish clearer rules for identifying, managing, and investigating situations where public officials may misuse their positions for personal benefit. The reforms also introduce stronger penalties and improved disclosure requirements.
The World Bank said the measures are expected to strengthen public institutions, improve procurement systems, and ensure that government resources reach citizens more effectively. Better financial management is also intended to reduce waste, increase savings, and create conditions that support inclusive economic growth.
The reform program includes expanding the use of Kenya’s Treasury Single Account, which brings government funds together into a more transparent system. The move is expected to improve oversight of public finances, reduce inefficient cash management, and lower the risk of misuse of government funds.
The initiative also supports the digitalization of government procurement systems. By moving public contracting online, Kenya aims to improve competition, increase transparency, reduce corruption risks, and make procurement processes easier to monitor.
Social protection reforms are another key part of the program. The World Bank is supporting Kenya’s Social Protection (General) Regulations 2026, which provide a stronger framework for delivering assistance programs. The reforms will also expand the use of the Enhanced Single Registry to better identify eligible beneficiaries and ensure support reaches the poorest households.
The World Bank said continued implementation of these reforms will be important for maintaining fiscal stability and improving long-term economic resilience. The partnership aims to help Kenya build a more transparent, inclusive, and sustainable economy while creating opportunities for growth and employment.
