Nairobi — The World Bank has approved a Sh5.8 billion loan to the Government for the education sector.

Citing measures taken by the Narc administration to fight corruption, the bank decided to release the delayed loan to finance education programmes.

During its board meeting in Washington on Tuesday, the bank noted that the country had "stepped-up measures to guard against corruption and ensure resources are properly used".

The approval is the first since the bank delayed Sh19 billion in aid to Kenya mid last year, citing corruption. The money included Sh7.2 billion in loans for the health sector.

The funds are a welcome relief for the Government, which opted not to factor donor aid in this year's Budget.

The bank has made corruption a key issue in disbursing aid.

As of February this year, the bank's portfolio in Kenya was made up of 14 "active" projects, with a total commitment of Sh52.1 billion.

Making the announcement, the bank's managing director, Mr Juan Jose Daboub, said the added safeguards in the education sector meant the bank could proceed with more clarity.

"We felt we could move forward with the loan given that safeguards that have been put in place," Daboub told Reuters. The bank said it had received commitments to tackle corruption from President Kibaki and other officials during a two-day visit.

The loan is part of Sh54 billion contribution by donors, including Britain, to support Kenya's education sector over the next five years.

The Government spends a third of its budget or Sh96 billion on the sector.

The free primary education programme would, this financial year alone, consume Sh9.2 billion, which would also cover core poverty alleviation programmes within basic education.

Each of the 7.6 million pupils is allocated Sh1,020 per year. The Government has spent more than Sh31 billion since 2003 on free education.

The Government is implementing the Kenya Education Sector Support Programme which will cost Sh500 billion. The programme will run until 2010. In April, Finance minister Amos Kimunya said the Government was gaining the trust of World Bank and IMF.