NAIROBI, KENYA: The World Bank has approved a Sh20 billion credit line to Kenya to help fight the impact of climate change and manage disasters.
The Disaster Risk Management Development Policy Financing with Catastrophe Deferred Drawdown Option (Cat DDO) will provide rapid access to funding in case of a disaster or public health emergency.
The funds will also support key reforms to strengthen the country’s ability to manage the impact of disasters on the economy and the vulnerable.
“We are working closely with the National Treasury in supporting Kenya to address the economic losses triggered by climate-related disasters that often hamper poverty reduction efforts and threaten the numerous advances made in promoting shared prosperity,” said World Bank Country Director Diarietou Gaye.
The facility will support the State’s efforts to manage disaster and climate risks with a programme of reforms to minimise the burden of economic recovery for Kenya.
According to the Economic Survey 2017, farmers in Kenya lost more than Sh16 billion in foregone revenue in 2016, owing to reduced rainfall in the October-December season that depressed crop yields in many parts of the country.
This slump in growth in the economic pillar has in the past held back growth, eroding the earnings of millions of households that rely on the sector.
The Cat DDO will also support improvements in building the regulatory environment in Kenyan cities.
This will limit future economic costs of natural hazards worsened by high population growth in towns.