The World Bank has postponed the disbursement of a KSh 78 billion emergency loan to Kenya, citing unresolved concerns regarding the government's spending plans.
The delay represents a significant setback for the administration of President William Ruto, which had relied on the facility to address immediate fiscal pressures.
According to local media reports, the lender's hesitation stems from specific objections to how the funds are intended to be allocated.
The World Bank's stance suggests a tightening of conditionalities, requiring Nairobi to demonstrate greater fiscal discipline before accessing the capital.
This development underscores the increasing scrutiny international financial institutions are applying to sovereign borrowing in emerging markets.
For investors, the delay introduces uncertainty into Kenya's near-term liquidity outlook.