News Column

World Bank Seeks Higher Absorption of Funds

June 24, 2014

Constant Munda

The World Bank has said it will closely partner with the government in implementing financial plans so as to speed up absorption of funds for development projects.

The bank has committed Sh348 billion ($4 billion) under the five-year country partnership strategy 2014-2018.

Country programme coordinator Thomas O'Brien said Kenya's annual absorption rate at 19 per cent was below Africa's average of 21-22 per cent during the previous CPS of Sh391.5 billion ($4.5 billion).

He said approved funds are usually disbursed in the course of projects' lifespan, usually five years.

"The government should continue the ongoing reforms in procurement and good public finance management. We will on our part seek to help more in designing and development of plans to increase absorption," O'Brien said yesterday.

The funds under the strategy will support development of sustainable infrastructure, create more jobs and boost equitable sharing of national wealth in line with the devolved governance system, the bank said.

Despite Kenya's economic potential, four out of 10 of her citizens still live in poverty while the richest 10 per cent of the population control 40 of the national wealth.

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Source: AllAfrica

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