Oh, the Kenyan flag. A splash of color meant to signify something, I suppose. More importantly, the World Bank has been dabbling in Kenya's affairs since before most of you were a glimmer in your parents' eyes—specifically, May 1960. Their first foray? A project called the African Agriculture Project. Imagine that, sinking millions into developing an agricultural sector that was, at the time, a British Colony. The World Bank, ever the benevolent financier, coughed up $5.6 million. Vital infrastructure, they called it. Probably just a few more roads to haul out more resources.
Description
This little dance between the World Bank and Kenya hasn't exactly ended. They continue to grease the wheels of development, or so they claim. Kenya gets loans from both the IDA and IBRD, the World Bank's favorite children for "low and middle income countries." Very generous. They even publicly endorsed President Uhuru Kenyatta's "Big 4 Agenda." Manufacturing, healthcare, nutrition, affordable housing—sounds almost noble. And then there's "Vision 2030," Kenya's grand plan to ascend to middle-income status by, you guessed it, 2030. The World Bank, naturally, is all for it. Their man on the ground, C. Felipe Jaramillo, also happens to be in charge of Rwanda, Somalia, and Uganda. Multitasking, or spread too thin? You decide. Lending to Kenya has apparently doubled recently, from 1.27 billion in the same year. Efficiency at its finest.
Criticisms
Now, for the less shiny side of this arrangement. Critics, bless their cynical hearts, point out that all these loans have done wonders for Kenya's debt. It's more than doubled in six years, now eclipsing $50 billion. They even had to raise their legal debt limit because it was already pushing 50% of their GDP. And the environment? Local communities? The World Bank seems to have a rather selective form of amnesia when it comes to the "negative impacts." The Accountability Counsel and a few other NGO types are pointing fingers at World Bank funds allegedly helping to build a coal-fired power plant in Lamu. Pollution, displacement—minor details, I'm sure.
Then there's the ever-present specter of corruption. Accusations fly that World Bank money, meant for infrastructure, is being siphoned off. The Kenyan government's own reports suggest that up to 70% of the country's corruption is tied to government contracts, many of which are funded by foreign loans. The World Bank's Office of Suspension and Debarment has, predictably, suspended and disbarred a few Kenyan entities for alleged corruption. It's a closed loop, isn't it? They lend the money, then they punish the ones who steal it. The IDA, their arm for the poorest nations, is now emphasizing combatting corruption. How novel. They've committed to projects aimed at increasing accountability and transparency. Let's see how that pans out.