Kenya set to benefit from Sh7.5 trillion fund to end extreme poverty

The funds have been pledged by 48 governments to the International Development Association (IDA), the World Bank’s fund for the poorest countries.PHOTO: WILLIS AWANDU

 

 Kenya is set to benefit from a $75 billion (Sh7.5 trillion) global fund aimed at fighting extreme poverty, and tackling conflict and climate change.

The funds have been pledged by 48 governments to the International Development Association (IDA), the World Bank’s fund for the poorest countries.

The money will also be used to promote governance and institution building, address fragility, violence and forced displacement, as well as jobs and economic transformation.

Kenya and its neighbours Uganda, Tanzania, Rwanda, Burundi, Ethiopia, South Sudan and Chad will get access to the money to tackle some of the pressing issues in their jurisdiction.

Jim Yong Kim, the president of the World Bank, said the money is underpinned by an overarching commitment to invest in growth, resilience and opportunities.

“This is a pivotal step in the movement to end extreme poverty. The commitments made by our partners, combined with IDA’s innovations to crowd-in the private sector and raise funds from capital markets, will transform the development trajectory of the world’s poorest countries,” he said.

Mr Kim added that Kenya is expected to use the money to help in the expatriation of refugees from Dadaab to Somalia, buy food for hunger-stricken residents of Kilifi and North Eastern, and address governance and job creation.

He said most of IDA’s funding targets African countries.

“With this innovative package, the world’s poorest countries – especially the most fragile and vulnerable – will get the support they need to grow, create opportunities for people, and make themselves more resilient to shocks and crises,” said Kyle Peters, an interim managing director at the World Bank, and co-chair of IDA18 negotiations.

 “IDA’s focus on issues like climate change, gender equality and preventing conflict and violence will also contribute to greater stability and progress around the world.”

IDA is active in 39 countries in Africa, where it is the single-largest source of donor funds for basic social services. Between the financial years of 2006 and 2016, IDA provided Sh8.3 trillion ($83 billion) in financing for more than 1,000 projects in sub-Saharan Africa.

Of this, more than Sh1.8 trillion ($18 billion) was invested in the development of institutions while nearly Sh1.3 trillion ($13 billion) supported the provision of critical health and social services.

Financing during the IDA18 replenishment period, which runs from July 1, 2017 to June 30, 2020, is expected to support essential health and nutrition services for 400 million people, among other projects.