World Bank Withholds Ksh97B Disbursement to Kenya, Again

Hello and welcome to the Money News Roundup Newsletter. Today, we’re covering the continued delay by the World Bank in disbursing Ksh97 billion to Kenya, a newly approved bill that exempts taxes on disaster relief imports, and President Ruto’s announcement on listing Kenya Pipeline on the NSE.

World Bank Withholds Disbursement to Kenya

The World Bank has once again delayed the disbursement of Ksh97 billion to Kenya, following an initial hold-up in early June.

Quoting Qimiao Fan, the World Bank Country Director for Kenya, Rwanda, Somalia, and Uganda, Business Daily reported that the delay is due to Kenya’s failure to implement agreed-upon reforms—specifically, the Conflict of Interest Bill, the adoption of a single treasury account, and the automation of government tenders.

"World Bank development policy operations (DPOs) are contingent on the completion of prior actions and an adequate macroeconomic and fiscal framework," Fan told the paper.

"We are continuing to prepare the second operation, and the timing of its presentation to our board hinges on the government meeting the agreed prior actions and maintaining an adequate macroeconomic policy framework for budget support."

Catch Up Quick: The Bretton Woods institution first delayed the funds in June when President William Ruto declined to sign the Conflict of Interest Bill, citing concerns over 12 clauses that had been weakened by the National Assembly. At the time, Treasury CS John Mbadi indicated the funds were expected in July, but now it looks increasingly unlikely.

Read more on Business Daily.

Newly Approved Bill Removes VAT & Other Taxes on Some Imported Goods

Members of the National Assembly have approved the National Disaster Risk Management Bill, 2023, which exempts from taxes all goods imported for disaster response. This includes materials, equipment, and other supplies.

A Daily Nation report noted that the goods will be exempt from import duty, value-added tax (VAT), demurrage charges, port charges, and more. Once signed into law, the bill will also establish the Intergovernmental Council on Disaster Risk Management and a new authority to oversee the coordination of disaster response at both the national and county levels.

Kenya Lists Ksh44.9B Infrastructure Bond on NSE in Landmark Deal

Kenya has marked a major milestone in capital markets with the listing of a Ksh44.9 billion infrastructure-backed security on the Nairobi Securities Exchange (NSE). Led by Linzi Finco, the deal will finance the construction of Talanta Sports City, a key facility ahead of the 2027 Africa Cup of Nations co-hosted by Kenya, Uganda, and Tanzania. The Linzi 003 Infrastructure Asset-Backed Security is one of the largest of its kind in the country, showcasing increased investor appetite for structured finance products. NSE Chair Kiprono Kittony and President William Ruto both hailed the development as a sign of market recovery and economic confidence, citing improved market capitalisation and rising bond activity.

According to Citizen Digital, the security pools future cash flows from infrastructure assets and repackages them into tradable instruments, opening up infrastructure funding to both institutional and retail investors. Treasury CS John Mbadi noted the government’s growing reliance on innovative financing methods such as securitisation, privatisation, and public-private partnerships to reduce pressure on public finances. Industry players have lauded the listing as a signal of growing sophistication and maturity in Kenya’s financial markets.

Kenya Pipeline Company to Be Listed on NSE by September

Kenya Pipeline Company (KPC) is set to go public by September as the government begins implementing a time-bound privatisation programme targeting key State-owned enterprises. According to The Standard, President William Ruto said the Cabinet is expected to approve the KPC Initial Public Offering (IPO) by the end of July, with the listing set to proceed to the National Assembly shortly after. The move marks a significant shift in the government’s approach to infrastructure financing, aimed at reducing reliance on public funds and attracting private capital. KPC has long been earmarked for privatisation but has faced delays due to legal and strategic concerns.

The National Treasury is finalising a new disclosure and listing framework that will compel State-owned entities to align with capital market standards. Under this reform, public enterprises will be required to publish standardised financial and operational data and list at least 20% of their equity on the Nairobi Securities Exchange within a year of initial disclosure. President Ruto made the announcement during the listing of Linzi Finco’s Ksh44.7 billion infrastructure bond, which will finance the construction of Talanta Sports City—one of the key venues for the 2027 Africa Cup of Nations.

State Agency Defaults on Chinese Loan Despite Holding Ksh2.8B

A State agency has defaulted on a Chinese loan even though it had Ksh2.8 billion sitting idle in its bank account at KCB Group, potentially exposing taxpayers to heavy penalties and a downgrade in the country’s credit rating.

According to Business Daily, the Auditor-General has revealed that the Rural Electrification and Renewable Energy Corporation (Rerec) has only paid Ksh1,179 from the account set up to repay a Ksh13.6 billion loan, raising questions about financial oversight and debt servicing discipline within public institutions.

NTSA Dismisses Audit Report Claiming It Lost Control of TIMS

The National Transport and Safety Authority (NTSA) has denied claims from Auditor General Nancy Gathungu’s 2024 report that it lost control of the Transport Integrated Management System (TIMS). In a statement on July 23, NTSA said it holds full ownership and intellectual property rights to TIMS, with all backend operations managed internally. While logins and payments are handled via e-Citizen, NTSA maintains control of system operations and data processing.

As reported by Kenyans.co.ke, the Auditor General raised concerns over the lack of a formal contract for TIMS and its reporting limitations. NTSA responded that its IT system is secured under a Zero Trust framework, accessible only to verified users. It also cited ongoing staff training and regular system updates to ensure service reliability for functions like vehicle registration and license renewals.