The World Bank’s board of directors in Washington announced Wednesday that it had received a $ 16.6 billion loan from the International Development Association (IDA).
Funding will come from a grant of Ksh 2.37 billion (US $ 21.4 million) from the multi-donor social sustainability trust fund for all umbrella trusts with funds from the Danish and Swedish governments for a total of US $ 171.4 million Dollar supplements.
The money will flow through the new Financing Locally-led Climate Action (FLLoCA) program. At least 87.5 percent of the funds are spent at district and community level.
“Kenya has shown leadership in creating a policy framework to deal with climate risks, even though measures are still underfunded,” said Keith Hansen, World Bank country director for Kenya.
The county councils will implement the FLLoCA program under the Program for Results (PforR), where counties will receive their annual payouts based on their performance against a specific results-based criterion.
The money is destined for the countries most exposed to climate risks and for those who commit to ensuring that climate finance hits the lowest possible levels.
The PforR will support investments in climate resilience at the community level, create incentives for system changes and strengthen the district governments’ climate finance.
It will strengthen the capacities of national governments to support the action of district governments, improve cooperation between national agencies on climate change and facilitate program oversight.
“Rural areas, particularly arid and semi-arid regions affected by the effects of climate change such as droughts and floods, as well as climate-related disease outbreaks, will be the main beneficiaries,” said Senior Social Development Specialist and World Bank Task Team Leader Nicholas Soikan.
It will address gender and other equality dimensions so that women, youth, marginalized and vulnerable groups, minorities, senior citizens, poor households and people with disabilities benefit from them.