A delegation from Italy which flew into the country has committed to giving President William Ruto's administration a concessional loan of Ksh22 billion ( €150 million).
The Italian delegation from the Ministry of Foreign Affairs indicated that the loan will help the Kenya Kwanza administration in its budget.
This was disclosed during a meeting with Treasury officials led by Principal Secretary Chris Kiptoo.
However, Italy noted that the funds will only be released once Kenya agrees to implement the reform measures outlined in the 6th Development Policy Operation (DPO).
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The policy will help strengthen fiscal sustainability through reforms that contribute to greater transparency and the fight against corruption.
The DPO organizes the multi-sector reforms into three pillars: fiscal and debt reforms to make spending more transparent and efficient and enhance domestic debt market performance; electricity sector and public-private partnership (PPP) reforms to place Kenya on an efficient, green energy path, and boost private infrastructure investment; and strengthening the governance framework of Kenya’s natural and human capital which includes the environment, land, water and healthcare.
Italy noted that Kenya must commit to implementing the measures before remitting the funds.
"During the discussions, the Italian Republic committed to providing a concessional loan of €150 million to the GoK for budgetary assistance. This support is contingent upon the successful implementation of the reform measures outlined in the 6th Devt Policy Operation DPO 6," a statement issued by the Treasury read in part.
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