In a statement, Treasury CS Ukur Yattani noted that the loan, under the World Bank Development Policy Operations (DPO), was necessary to cover the budget deficit.
The talks are expected to be completed and the funds disbursed by June 2021.
â€œKenyan ministries, departments and agencies (MDAs) have delivered all prior actions for consideration by the World Bank under DPO III,â€ read a statement from Yattani seen by Citizen TV.
He further noted that once approved, the loan would be used to deliver inclusive growth in four sectors.
They include promoting transparent spending, unlocking public-private partnerships (PPPs), enhancing revenues and strengthening debt management.
This comes barely two days after the IMF approved a Ksh257 billion with Kenyans protesting the increasing debt levels.
A section of Kenyans flooded the Facebook page of the international lender and signed an online petition with over 200,000 signing it, an unprecedented move that even caught the eye of the international media.
The loan will be given in phases over three years and reviews will also be conducted to ensure compliance.
The National Treasury committed to increase taxes and reduce its wage bill in order to receive the Ksh257 billion IMF loan.
Kenya’s foreign debt has since crossed Ksh10 trillion with experts warning that the country’s debt sustainability is crossing the red line.