Kenya is moving to unlock about $400 million in emergency World Bank financing as the East African economy braces for a combination of higher energy costs, El Niño disruption and health risks from Ebola in the region.

The funding could provide Nairobi with much-needed fiscal room at a time when rising debt repayments have squeezed government finances. Kenya is expected to access the money within six weeks through the World Bank’s Rapid Response Option, according to a person familiar with the matter.

The financing was initially sought after the Iran war in February pushed global crude oil prices higher, increasing pressure on Kenya’s economy and government finances. The emergency risks have since broadened, with potential health and climate shocks adding to the strain.

World Bank money targets health, agriculture and energy pressures

The funds could be used to cushion Kenya’s health sector against Ebola risks, protect agriculture and water resources from El Niño-related disruption, and help absorb the wider economic impact of elevated energy prices.

The World Bank said it is supporting Kenya in finalising a framework that would allow rapid financing when an eligible crisis or emergency occurs, including the Middle East conflict and El Niño. Kenya’s Finance Ministry did not respond to a request for comment.

The regional Ebola threat remains a concern after a major outbreak in the Democratic Republic of Congo, which also spread into neighbouring Uganda. Kenya is also preparing for the effects of El Niño after the 1997 episode caused severe flooding, crop losses and damage to roads and homes.

Kenya could tap 10% of undisbursed World Bank funds

The potential $400 million represents roughly 10% of Kenya’s undisbursed World Bank financing, the maximum typically available through the Rapid Response Option.

Kenya’s World Bank portfolio exceeds $7 billion, with about $3 billion already disbursed or committed.

Kenya and the lender are finalising a Contingency Emergency Response Project that will determine the funding terms and final amount.

The World Bank board has already cleared the projects supporting the emergency financing, allowing funds to be released once the framework is completed.

The move comes as Kenya looks for additional financing options to ease pressure on its public finances and respond quickly if the health, climate and energy risks materialise.