Kenya seeks World Bank cash to soften Iran war shock

Kenya has requested rapid financial support from the World Bank to help cushion its economy against the shocks triggered by the Iran war, central bank governor Kamau Thugge told Reuters. The East African country is trying to prevent shortages of essential imports such as petrol while also containing cost increases that could feed into inflation.

Thugge said the request for World Bank rapid financing was significant, though he did not disclose a figure. He added that the loan would come on top of a budget support facility, known as development policy operations, that both sides had already been discussing before the crisis began.

The move comes as Kenya joins a growing number of countries looking to multilateral lenders for help with the fallout from the conflict. President William Ruto has already signed a law cutting value-added tax on petroleum products to 8% from 13% for three months, a sign of the strain on public finances as the government tries to shield consumers from rising fuel prices.

Kenya’s central bank also lowered its 2026 growth forecast last week to 5.3% from 5.5%, warning that the Iran war could hit key sectors of East Africa’s biggest economy. Analysts said the request to the World Bank should help confidence, though the country remains exposed because of its oil import dependence and the risk that higher crude prices could keep pressure on the shilling.

Thugge said the currency had weakened slightly at the height of the fighting between the U.S. and Israel and Iran, but has since recovered most of those losses. He added that any further depreciation would be orderly and said the central bank has enough reserves to limit volatility, with hard-currency reserves above $13 billion, equal to 5.8 months of import cover.

‍