On Tuesday, the National Assembly approved and accepted President William Ruto’s proposed changes to the Conflict of Interest Bill, which had previously stalled Kenya’s access to World Bank budget support funding.
The President had sent the Conflict of Interest Bill No.12 of 2023 back to Parliament on May 2, accompanied by a memorandum highlighting sections he believed required strengthening.
According to the World Bank and Treasury Cabinet Secretary John Mbadi, the Conflict of Interest Bill was a crucial requirement set by the global lender for Kenya to qualify for additional loans and development aid.
The World Bank had specifically made the enactment of the bill a condition for disbursing around Ksh97 billion (USD 750 million) in financial support.
The legislative requirement was one element of a wider package of governance reforms aimed at improving transparency and accountability in the Kenyan government, as outlined by the Washington-based World Bank.
Delays in disbursing billions in Development Policy Operation (DPO) funding during the current financial year were largely due to the National Assembly’s earlier dilution of the Bill.
The Development Policy Operation (DPO) is a form of budget support financing provided by the World Bank directly to a country’s treasury to aid in implementing policy and institutional reforms. The funds are typically released in phases once specific policy conditions are fulfilled.
The National Assembly’s approval of President Ruto’s proposed changes signals the government’s continued efforts to unlock the World Bank funding, with just three weeks remaining before the end of the 2024/25 financial year.
The Conflict of Interest Bill No.12 of 2023 will now move to the Senate for further consideration. If the Senate passes the Bill, Kenya could become eligible for additional loan packages from the World Bank.
Treasury Cabinet Secretary John Mbadi, speaking before the National Assembly on April 16, also revealed that the government had secured a Ksh78 billion facility from the World Bank, expected to be released in June 2025.
