<\/p>\n
Kenya is in talks with the World Bank for emergency funding to help deal with the repercussions of the Iran war, according to central bank Governor Kamau Thugge.<\/p>\n
The East African nation is seeking the funds from the Washington-based lender\u2019s Rapid Response Option facility, Thugge said. It allows quick access to as much as 10% of already-approved but undisbursed financing under an existing $1.2 billion program.<\/p>\n
The US-Israel war on Iran has roiled the global economy, with the International Monetary Fund forecasting that the spillovers from the conflict will send more African governments to request financial assistance. Kenya, which was at the cusp on an economic recovery, raised fuel prices to the highest in three years and is bracing for a jump in food prices because of rising fertilizer costs.<\/p>\n
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\u201cBecause it doesn\u2019t have to go to the board, these disbursements can take place very quickly,\u201d most likely by June, when Kenya\u2019s financial year ends, Thugge said in an interview in Washington, where he\u2019s attending the IMF Spring Meetings. He said discussions were held this week.<\/p>\n
Thugge said that tea and flower exports are taking a hit because of the war. Another fallout could be lower remittances, with about 10% of the total coming from the Middle East.<\/p>\n
The Kenyan authorities and the World Bank are working to quantify how much the nation could withdraw.<\/p>\n
Separately, Kenya is in talks with the IMF for a new program after prematurely ending the previous one last year. There\u2019s no time line on when the fund and the authorities might reach a deal, Thugge said.<\/p>\n
\u201cWe continue to have discussions with them,\u201d he said. \u201cThe idea would still be to have a funded program.\u201d<\/p>\n
There was some \u201cdifference of opinion\u201d between Kenya\u2019s Treasury and the IMF over the government\u2019s treatment of future tax income used to fund major infrastructure projects, which the fund said should be accounted for as sovereign debt.<\/p>\n
\u201cIt\u2019s not like some other countries where debts were hidden, then suddenly they came out from from the blue,\u201d he said. \u201cThis one is known. It\u2019s just a difference of opinion.\u201d<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Kenya #seeks #emergency #World #Bank #funds #absorb #Iran #war #impact<\/p>\n","protected":false},"excerpt":{"rendered":"
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