The Kenyan government is expected to access approximately Ksh51 billion in emergency financing from the World Bank within the next six weeks to help cushion the country against the effects of a possible Ebola outbreak, El Niño rains and rising fuel prices.
According to Reuters, Kenya applied for the World Bank's emergency financing facility, known as the Rapid Response Option, following the outbreak of the Iran war in February, which contributed to an increase in global crude oil prices.
A World Bank spokesperson told the publication that the lender was working with Kenya to complete a framework that would enable the country to access rapid funding whenever an eligible crisis or emergency arises.
The anticipated funds are expected to bolster the health sector's preparedness and response to the threat of Ebola, while also supporting efforts to reduce the impact of El Niño on agriculture and the environment.
The development comes as Kenya prepares for above-normal rainfall between October and December, with the rains expected to begin during the first week of October.
The Kenya Meteorological Service Authority (KEMSA) and the Kenya Red Cross have warned that the anticipated heavy rainfall could cause flooding in several parts of the country and potentially displace more than one million people.
Part of the emergency financing is also expected to help Kenya manage the economic consequences of elevated fuel prices following the escalation of the Middle East conflict, which has disrupted movement through the Strait of Hormuz.
Apart from addressing the effects of El Niño and costly fuel, the funding is expected to strengthen Kenya's preparedness and response measures against the threat of Ebola in the region.
The country faces an increased Ebola risk amid outbreaks within the region. The Democratic Republic of Congo (DRC) has previously experienced one of the deadliest Ebola outbreaks, while neighbouring Uganda has also recorded cases of the disease.
Under the World Bank's emergency financing framework, countries such as Kenya can generally access up to 10 per cent of their undisbursed lending portfolio.
Based on Kenya's current World Bank portfolio, the arrangement could allow the country to access about Ksh51 billion, although the final figure will depend on the amount of undisbursed funds available when the emergency financing framework is finalised.
Kenya's World Bank project portfolio is valued at more than Ksh900 billion ($7 billion), with around Ksh388 billion ($3 billion) already disbursed or committed.
Reports indicate that Kenya and the World Bank are in the final stages of preparing a Contingency Emergency Response Project, which will outline the conditions and procedures for accessing the emergency funds.
The World Bank Board has already approved the initial stages of the Rapid Response Option, paving the way for the release of funds once the contingency framework is completed.
The expected emergency financing comes at a time when Kenya is exploring additional funding options as growing debt repayment obligations continue to put pressure on the country's finances.
