WASHINGTON, June 29, 2026 - Kenya's reform to strengthen governance, improve public financial management, and expand social protection for its most vulnerable citizens received World Bank Group support today through a $750 million Development Policy Operation (DPO), contributing to the country's efforts to establish the regulatory certainty required to create jobs, attract private investment, and lift people out of poverty.
The Second Kenya Fiscal Sustainability and Resilient Growth Development Policy Operation supports a country-led reform program to make public resources more transparent, efficient, and equitable and to reduce corruption. The financing combines a $340 million International Bank for Reconstruction and Development (IBRD) loan and $410 million highly concessional International Development Association (IDA) financing, including dedicated livelihoods support for refugees and host communities.
A central part of Kenya's reform program is strengthening governance and preventing corruption. Kenya has enacted a Conflict-of-Interest law and has gazetted the Conflict-of-Interest Regulations 2026, which set clear rules to prevent, detect, and investigate situations where public officials could use their positions for private gains. The regulations introduce stronger penalties and improved disclosure requirements - closing loopholes that have historically allowed conflicts of interest to go unaddressed.
"By supporting reforms to address conflicts of interest, strengthen procurement systems, improve public financial management, and expand social protection, this operation will help Kenya reduce leakage, generate fiscal savings, and ensure that public resources deliver better results and reach the people who need them most," said Qimiao Fan, World Bank Division Director for Kenya. "It is also helping establish the foundational, business-enabling environment that is necessary to support higher and more inclusive growth and for the private sector to create jobs."
The government has also directed all ministries, departments, and agencies to use the Treasury Single Account. This will reduce idle cash in fragmented accounts, limit costly overdrafts, and give the Treasury a clearer view of government cash balances, helping reduce the risk of leakage and misuse of public funds. The program also advances electronic government procurement to make public contracting more open, competitive, and transparent. Moving procurement online can reduce corruption risks, increase supplier competition, lower costs, and make contracting easier to audit.
The program also helps protect Kenya's most vulnerable people by supporting the Social Protection (General) Regulations 2026, which provide a clearer framework for delivering social assistance. It also supports the use of Kenya's Enhanced Single Registry as the main platform for identifying beneficiaries, helping ensure support reaches the poorest households while reducing duplication.
It is critical for the Kenyan government to stay on the path of these reforms to ensure fiscal and debt sustainability. The World Bank Group remains committed to partnering with Kenya to build a more transparent, resilient, and inclusive economy for all Kenyans.
