President William Ruto’s administration is pursuing approximately $450 million (about Ksh58 billion) in emergency financing from the World Bank to help shield Kenya’s economy from the impact of the U.S.-Israel conflict with Iran and looming weather-related risks.
According to Bloomberg, the government is in the final stages of securing the funding through a Contingent Emergency Response Project (CERP), an emergency financing mechanism that enables the World Bank to rapidly redirect resources from existing projects during times of crisis.
The financing is expected to be available by October, coinciding with forecasts of a stronger El Niño season, although the final amount and disbursement timeline remain subject to approval.
The move comes as Kenya grapples with mounting economic pressures triggered by the Middle East conflict, which has driven up global oil prices, increased transport and manufacturing costs, and disrupted international trade.
At the same time, the country is preparing for possible severe weather after the World Meteorological Organisation (WMO) warned that El Niño is likely to strengthen between August and October, raising the risk of above-average rainfall and extreme weather events across many regions.
Kenya remains particularly exposed to fluctuations in global fuel prices because it relies heavily on imported petroleum products.
Rising oil prices typically lead to higher transport expenses, increased fertiliser costs and more expensive food and essential commodities.
The conflict has also disrupted key shipping routes, pushing up freight charges, affecting exports and creating uncertainty in global financial markets, factors that have weakened investor confidence and put pressure on foreign exchange earnings.
Unlike a traditional development loan, the proposed World Bank support would be provided through an emergency response mechanism designed to give governments quick access to financing during unforeseen crises.
The request follows earlier warnings from the World Bank that oil-importing countries such as Kenya face heightened risks from rising fuel and food prices linked to geopolitical tensions in the Middle East.
The lender recently revised Africa’s 2026 economic growth forecast downward to 4.1 percent while increasing its inflation projection to 4.8 percent, citing the economic effects of ongoing geopolitical instability.
With Kenya already battling high inflation, rising public debt and an elevated cost of living, the emergency financing is expected to provide additional fiscal space for the government to respond to both external economic shocks and potential weather-related disasters.
If approved, the funding will help cushion households and businesses while protecting critical sectors of the economy from further disruption caused by global conflict and extreme weather.
