Kenya: World Bank delays Sh14bn loan for Covid-19 vaccines

The World Bank has delayed a release of a 14.4 billion Kenyan shillings loan to help Kenya buy COVID-19 vaccines, threatening the government's plan to inoculate 10 million people by December. The World Bank says that the billions of shillings will be released to the Treasury once Kenya meets undisclosed conditions that are yet to be met. Economist Churchill Ogutu from IC Asset Managers shed light on the current situation of vaccination in Kenya. As of now, only 4 million people in Kenya have received the vaccine, with 3 million having received the first shot and 2 million fully vaccinated, which represents only 4.5% of the adult population. The ambitious target is to vaccinate 26.6 million Kenyans by June next year. However, the slow pace of vaccination progress poses a challenge to achieving this goal. The delay in the disbursement of funds from the World Bank, expected to be around 13 million US dollars, has hindered the procurement of vaccines for the country. The majority of the funding is allocated to the purchase of vaccines, with a focus on vaccines such as Moderna and Johnson & Johnson, despite initial plans involving AstraZeneca. The reasons behind the funding delay remain undisclosed, leaving the government in a vulnerable position as it struggles to secure alternative vaccine sources. This delay has put the vaccination plan at risk, and the country may face challenges in reaching the target of 10 million vaccinations by the end of the year. The government's dependency on multilateral lenders like the World Bank and IMF comes with conditions that must be met for the funding to be released. These conditions include transparency in debt data and adherence to reform measures as stipulated by the lenders. Kenya has shown compliance with these conditions, aligning with the requirements set by the multilateral lenders. Over 1.2 million Kenyans have received both doses of the vaccine, while 3.3 million have received the first dose only. However, vaccine hesitancy and distribution challenges have hindered the progress of vaccination in the country. To boost vaccination rates, the government must address vaccine hesitancy and raise awareness among the adult population to encourage vaccine uptake. With elections approaching, the risk of Covid-19 spread remains a concern, as political gatherings could serve as potential super-spreader events. Despite the current low infection rate of 0.9%, complacency could pose a threat to public health as the country transitions into a heated season with elections on the horizon. The focus should be on accelerating vaccination efforts to ensure a significant portion of the population is protected from the virus, especially as the country faces potential challenges ahead.