WB says infrastructure fund offers ‘short-term relief’ to Kenya fiscal woes

The World Bank views gains from Kenya's National Infrastructure Fund (NIF) as short-term and calls for deeper structural reforms to lower the budget deficit and ease debt pressures. Kenya expects the fund to mobilize up to Sh5 trillion by crowding in private capital, but the Bank warns this does not address underlying weaknesses in revenue mobilization and spending efficiency. The projected fiscal deficit for the cycle ending June 2027 is estimated to narrow only slightly to Sh1.11 trillion from Sh1.19 trillion. The Bank recommends reforms including increasing productivity, ending market distortions, and promoting a more equitable fiscal policy.