The Senate has commenced investigations into how the World Bank gave a Sh156 billion loan as a condition of integrating 400,000 refugees. This is after nominated Senator Crystal Asige (left) raised the alarm claiming that the multilateral lender could have credited Kenya with the amount as a condition for integrating refugees. Asige now wants the Senate Finance and Budget Committee to establish and assess the origin of the 400,000 refugees.

“The committee should disclose whether the money is a loan to be repaid or a bribe to integrate refugees,” said Asige in the statement.

Asige also wants the committee to establish a correlation between the Sh156 billion being given to Kenya and the 400,000 thousand refugees that the two must go in hand.

The nominated Senator, while seeking a statement on the floor of the House, asked the committee to establish and assess the origin of the 400,000 refugees that the World Bank wants the government to integrate.

Strings attached
“The Committee should state if it’s a loan and not a grant so why should there be any condition like taking refugees as collateral?” posed Asige.

Last year, Kenya received a loan of Sh156billion (US$1.2 billion) from the World Bank to help the country address short-term fiscal pressures and accelerate green initiatives.

The loan facility sought to foster more competitive and inclusive product and labour markets and strengthen climate action, building on Kenya’s strong leadership under the 2023 Nairobi Declaration on Climate Change.

The Sh156billion Development Policy Operation (DPO) was funded through a combination of financial instruments, including an International Bank for Reconstruction and Development loan of Sh110billion.

Apart from the World Bank, the other partners include the International Development Association (IDA) which pumped in a credit worth Sh39billion and a Sh6.5billion IDA grant from the Window for Host Communities and Refugees.

According to the latest National Treasury report, Sh1.6trillion has been allocated for debt repayment in the 2025-26 financial year the highest in the country’s history.