The Kenyan government has secured a $750 million loan from the World Bank as part of efforts to reduce its dependence on domestic borrowing and strengthen the country’s public finances.

According to government officials, the funding is expected to ease pressure on the local financial market by providing an alternative source of financing, allowing the government to scale back borrowing from domestic lenders. Excessive domestic borrowing has often been blamed for driving up interest rates and limiting access to affordable credit for businesses and individuals.

The World Bank said the financing is aimed at supporting Kenya’s ongoing economic reforms, improving fiscal sustainability, and promoting long-term economic growth. The funds will also help the government meet key budgetary obligations while implementing measures to stabilize the economy.

Kenya has been facing growing debt challenges in recent years, prompting authorities to pursue reforms designed to increase revenue collection, manage public spending more efficiently, and reduce reliance on expensive short-term domestic loans.

Economic analysts say the loan could help ease liquidity pressures in the banking sector and encourage greater private sector lending. However, they also stress that continued fiscal discipline and prudent debt management will be essential to ensure the country’s debt remains sustainable.

The latest World Bank financing underscores continued international support for Kenya’s economic reform agenda as the government seeks to restore macroeconomic stability and create a more resilient economy.