The government is expected to receive Ksh51 billion in emergency financing from the World Bank within six weeks to cushion the country from the impacts of the Ebola outbreak, El Niño and high fuel prices.According to Reuters, Kenya applied for the World Bank's emergency financing, known as the Rapid Response Option, after the Iran war began in February and pushed crude oil prices higher.A World Bank spokesperson told the publication that the lender was supporting Kenya to finalise a framework that would allow it to access rapid financing when an eligible crisis or emergency occurs.The emergency funds are expected to support the health sector in responding to the risk of Ebola, while also helping mitigate El Niño's impact on agriculture and environment.The latest update comes as Kenya braces for above-normal rainfall expected between October and December this year, with the rains forecast to begin in the first week of October.The Kenya Meteorological Service Authority (KEMSA) and Kenya Red Cross have warned that the heavy rains could trigger flooding in several areas, potentially displacing more than one million people.Meanwhile, the financing will also help Kenya manage the economic impact of high fuel prices following the escalation of the Middle East crisis, which has resulted in restricted passage at the Strait of Hormuz.Beyond mitigating the impact of El Niño and high fuel prices, the funding will also support Kenya’s efforts to strengthen preparedness and response measures against the Ebola virus in the region. The Ebola risk comes amid outbreaks in the region, with the Democratic Republic of Congo having experienced one of the most severe Ebola outbreaks, while the disease also spread to neighbouring Uganda.Under the World Bank's emergency financing framework, countries such as Kenya can typically access up to 10 per cent of their undisbursed lending portfolio.The arrangement could give Kenya access to about Ksh51 billion based on its current World Bank portfolio, although the final amount will depend on the undisbursed balance when the financing framework is completed.Kenya's World Bank project portfolio exceeds Ksh900 billion ($7 billion), with about Ksh388 billion ($3 billion) already disbursed or committed.Reports indicate that Kenya and the World Bank are finalising a Contingency Emergency Response Project that will set out the terms of the emergency financing.The World Bank Board has already cleared the initial stages of the Rapid Response Option, meaning funds can be released once the contingency framework is finalised.The expected financing comes as Kenya seeks additional sources of funding amid growing debt repayment obligations that have squeezed.
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